Khaberni - Oil prices continued their gains today, Monday, with Brent crude aiming for a record monthly increase, after the Houthis in Yemen launched their first attacks on Israel at the beginning of the week, leading to an expansion of the American-Israeli war with Iran in the Middle East.
By 03:42 GMT, Brent futures jumped $2.43 or 2.16% to reach $115 per barrel, after closing up 4.2% on Friday.
The price of West Texas Intermediate crude reached $101.50 per barrel, up by $1.86 or 1.87%, after rising 5.5% in the previous session.
Vandana Hari, founder of "Vanda Insights," a company specializing in oil market analysis, said, "The market has almost dismissed the possibility of ending the war through negotiations, despite Trump's claims of having 'direct and indirect' talks with Iran, and his readiness for a sharp escalation in military combat, which is a positive signal for crude oil, with significant doubts about the timing and nature of the outcome."
U.S. President Donald Trump said that the United States and Iran are meeting "directly and indirectly" and that the new leaders in Iran were "very rational," with more U.S. forces arriving in the region, while the Israeli military said on Monday that it was attacking Iranian government infrastructure throughout Tehran.
Brent crude's price increased by 59% this month, the biggest monthly gain, surpassing the gains witnessed during the Gulf War in 1990, after the conflict with Iran led to the virtual closure of the Strait of Hormuz, a passage for a fifth of the world’s oil and gas supplies.
The scope of the war, which began on February 28 with American and Israeli strikes on Iran, spread across the Middle East, as the Houthis in Yemen, allied with Iran, launched their first attacks on Israel since the conflict began on Saturday, raising concerns about shipping lanes around the Arabian Peninsula and the Red Sea.
Analysts at J.P. Morgan led by Natasha Kaneva noted in a memo, "The conflict is no longer confined to the Gulf and around the Strait of Hormuz, but has extended to the Red Sea and Bab-el-Mandeb, one of the world's most critical passages for the flow of crude oil and refined products."
Last week, Saudi crude oil exports rerouted from the Strait of Hormuz to the Yanbu port on the Red Sea amounted to 4.658 million barrels per day, according to data from Kepler analytics firm.
