Oil prices jump to over $70 amid Iran war, Strait of Hormuz shipping fears

Oil prices spiked Monday to nearly $80 a barrel amid the United States’ war with Iran, as shippers are being cautious about entering the Strait of Hormuz – a major shipping channel. Brent crude prices reached a new 52-week high on Monday, increasing by 7.6% to hit $78.41 at 6:00 a.m. ET, while U.S. West Texas Intermediate prices also jumped to more than 7.4% to $72.01, according to CNBC.
Meanwhile, global oil majors traded higher, with ExxonMobil up 4.1% in pre-market trading, Chevron up 3.9%, France’s Totalenergies last seen 3.6% higher, London-listed Shell increasing 2.2%, and BP gained 1.8%.
The U.S. and Israel launched strikes against Iran over the weekend, which has retaliated by attacking military and infrastructure targets across several countries in the region. Israel launched new strikes against both Iran and Hezbollah targets in Lebanon on Sunday.
Founder and director of research at Energy Aspects, Amrita Sen, told CNBC on Monday that she expects oil prices to likely hold at around the $80 level for some time.
As three oil tankers were hit over the weekend, shippers are being cautious about going through the Strait of Hormuz, Sen said.
She said Oman and certain United Arab Emirates grids can bypass the Strait, and Saudi Arabia has contingency plans to move its oil through the East-West pipeline via the Red Sea.
“But even if you are able to move 5 million out through other methods, about 10 is still stuck,” Sen added.
She also noted that, if energy infrastructure is hit, the price of oil could reach $100.

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