Oil prices climbed on Monday as tensions in the Strait of Hormuz intensified, with the United States signaling support for commercial shipping while Iran warned it would target any American intervention.
International benchmark Brent crude traded at $110.58 per barrel at 11.15 a.m. local time (0815 GMT), up around 2.23% from the previous close of $108.17.
US benchmark West Texas Intermediate also increased about 2.11% to $104.09 per barrel, compared with $101.94 in the previous session.
US Central Command (CENTCOM) said Sunday that its forces will “support merchant vessels seeking to freely transit” the Strait of Hormuz under President Donald Trump’s “Project Freedom.”
CENTCOM added that support for merchant vessels transiting the strait will include guided-missile destroyers, more than 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.
“Our support for this defensive mission is essential to regional security and the global economy as we also maintain the naval blockade,” said CENTCOM Commander Adm. Brad Cooper.
However, the Axios news site reported Sunday that the new initiative may not involve US Navy vessels directly escorting commercial ships, but US Navy ships would be “in the vicinity” if needed to prevent Iran’s military from targeting commercial vessels transiting the strait, citing two American officials.
The move comes as disruptions around the Strait of Hormuz continue to ripple through global markets, with energy, fertilizer and key industrial commodities posting sharp price gains over the past two months.
Tensions remained elevated after Iran’s Islamic Revolutionary Guards Corps (IRGC) warned it would target US forces if they attempt to approach or enter the strait.
“We warn that any foreign armed force, especially the invading American army, will be attacked if they attempt to approach and enter the Strait of Hormuz,” the IRGC said in a statement carried by state-run broadcaster IRIB.
According to the statement, any safe passage and navigation in the strait must occur in coordination with Tehran “under any circumstances.”
Lingering concerns over Middle East supply risks continued to shape sentiment, but expectations of higher output from the OPEC+ alliance limited further price gains.
Seven OPEC+ members, including countries from the Organization of the Petroleum Exporting Countries and allied producers, are set to increase production by 188,000 barrels per day in June, a move largely in line with market forecasts.
