Oil rises on renewed US-Iran tensions, Russia supply concerns

Renewed US-Iran tensions near the Strait of Hormuz and Russian fuel disruptions raise concerns over potential supply shortages

Oil prices gained on Monday as escalating tensions between the US and Iran fueled supply concerns despite a ceasefire agreement between Washington and Tehran, while the prolonged Russia-Ukraine conflict kept geopolitical risk premiums elevated.

International benchmark Brent crude traded at $73.22 per barrel at 9.53 a.m. local time (0653 GMT), up around 0.8% from the previous close of $72.60.

US benchmark West Texas Intermediate (WTI) rose about 1% to $69.96 per barrel, compared with $69.23 in the previous session.

American forces carried out additional strikes against multiple targets in Iran after Tehran’s latest attack on a commercial ship near the Strait of Hormuz, the US military’s Central Command (CENTCOM) confirmed Saturday.

It said the strikes came after Iranian forces launched a one-way attack drone that hit the M/T Kiku at 4.30 a.m. ET (0830 GMT) while the Panama-flagged tanker was transiting near the Strait of Hormuz with more than 2 million barrels of crude oil.

CENTCOM said Iran had been given an opportunity to uphold a ceasefire agreement following US strikes a day earlier in response to an Iranian attack on the M/V Ever Lovely, but “elected not to.”

Earlier, US-based news outlet Axios reported, citing a US official, that US military was conducting strikes against Iranian targets near the Strait of Hormuz in retaliation for the attack on the commercial tanker.

Rep. Ro Khanna said Saturday that new US strikes on Iran violate the War Powers Resolution, warning that President Donald Trump could face court action if he does not halt the war.

“Trump must stop this war now — or we will take him to court to compel him to do so,” Khanna, the representative from the state of California, wrote on US social media company X.

On the other hand, Axios reported, citing a senior US official, that the US and Iran have agreed to halt mutual attacks and plan to meet in Qatar on June 30 to resolve disputes over the Strait of Hormuz, limiting further upward price movements.