Brent crude topped $90 a barrel on Monday, as intensifying US-Iran hostilities revived fears of a wider regional conflict following the deaths of US service personnel in Jordan and Iranian strikes on Gulf energy infrastructure.
Brent, the benchmark for 80 per cent of traded oil, stood at $90.32 a barrel, up 2.52 per cent, at 8.41am UAE time. US gauge West Texas Intermediate traded at $84.44, up 2.36 per cent.
Two American service members were killed and a third remains missing after a July 17 Iranian strike in Jordan. US Central Command said remains were recovered near the site on Sunday, and an identification process is under way.
A service member was also killed in northern Iraq on July 18 while disposing of an Iranian drone. US President Donald Trump said the troops made the "ultimate sacrifice" to prevent Tehran from acquiring a nuclear weapon.
Gulf infrastructure has been hit in recent days following Iran's retaliation. Iran struck US assets over the weekend, sparking a fire at a power plant in Kuwait. Significant damage was also reported at a water desalination plant and an oil facility in the northern Gulf state.
US forces have launched a ninth consecutive night of strikes on Iranian targets, with its Central Command saying the campaign will continue degrading capabilities used against ships in the Strait of Hormuz.
Mr Trump declared the ceasefire “over” this month. He has floated reimposing a naval blockade and raised the prospect of seizing Iran's Kharg Island export terminal. Both sides have said backchannel talks continue through Qatari mediators.
Brent last traded near these levels in March, during the war's opening weeks, when supply shut-ins across Gulf producers briefly pushed prices towards $120.
Goldman Sachs said this month that its $100 Brent scenario is “back in play” after Iran declared the strait closed following a strike on a cargo vessel and a US retaliatory strike on more than 140 targets.
Helima Croft, global head of commodity strategy at RBC Capital Markets, said the region remains “nowhere close to normalisation” in the Strait of Hormuz. Giovanni Staunovo, commodity analyst at UBS, said this month that tanker numbers through Hormuz remain the key variable, with both a risk premium and a disruption risk currently supporting prices.
