Oil prices continued their upward momentum after the United States targeted multiple Iranian tankers near the strategic export hub of Kharg Island, intensifying hostilities and fueling concerns over potential severe disruptions to shipping through the Strait of Hormuz. West Texas Intermediate crude futures have climbed above $94 per barrel, marking a seventh consecutive trading day of gains. Simultaneously, Brent crude futures have settled near the $98 per barrel mark. According to a US official, the vessels targeted were linked to Iran's Islamic Revolutionary Guard Corps, and this offensive was a direct retaliation for an Iranian attempt to strike a US warship with a missile.

In response, Tehran has fired ballistic missiles in the Persian Gulf and deployed a warning vessel toward Jordan. Iran's state television, citing the Revolutionary Guard, reported that all crew members on tankers near Kuwait and Bahraini terminals should "immediately abandon their vessels, whether anchored or docked, as they will become targets." This latest round of US airstrikes follows a renewed assault by Iranian-backed Houthi militants on energy facilities in southern Saudi Arabia, which forced several installations to shut down operations.

Over the past week, the escalation of conflict in the Middle East has resumed, ending a period of relative quiet and driving oil prices to new highs. "With the war entering its seventh month, the path of least resistance is a strong and steady rise," remarked Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets. "The fundamentals for commodities remain bullish amidst the ongoing deterioration of global inventories and reserves. In the typical pattern, both the United States and Iran will continue their reciprocal strikes and warnings."

Brent crude has surged over 60% this year and is nearing the $100 per barrel threshold for the first time since late July. As the Middle East conflict expands towards the Red Sea near Saudi Arabia and with the Russia-Ukraine war ongoing, prices for refined products like diesel have risen even more sharply. WTI crude futures for October delivery climbed 1.7% to $93.03 per barrel, with Monday's trading session adjusted to Tuesday due to the US holiday. November-delivery Brent futures edged up 1% to $97.92 per barrel.