Oil prices climbed above $97 a barrel on Monday as renewed fighting between the United States and Iran raised fresh concerns about global energy supplies and shipping through the Strait of Hormuz.
Brent crude rose to around $97.48 per barrel, while U.S. West Texas Intermediate climbed to approximately $92.62, following a weekend exchange of attacks involving vessels in waters around Iran.
The latest escalation comes after U.S. forces struck three Iranian oil carriers. U.S. Central Command said the action followed Iranian ballistic missile launches targeting two U.S. Navy ships.
Iranian forces also reported targeting vessels operating along routes Tehran considers unauthorized.
Now, Iran is preparing another major move.
Iranian officials announced plans to establish a new restricted zone in the Gulf and introduce new shipping routes through the Strait of Hormuz.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said the restricted zone would begin near the area of the U.S. blockade and extend into parts of the Gulf.
Iran also says ships entering the restricted area could be placed on a sanctions list.
Tehran is additionally preparing maps for a new international shipping corridor through Iranian and Omani waters. Iranian officials say the plans are expected to be finalized in the coming days.
The Strait of Hormuz remains one of the world’s most important energy routes.
Historically, roughly one-fifth of global oil supplies pass through the narrow waterway, making any disruption a major concern for energy markets and consumers around the world.
Shipping activity is already showing signs of severe pressure.
According to shipping data cited by Reuters, an average of only around 10 commodity vessels per day crossed the Strait of Hormuz during the previous 10 days — the lowest level since May.
For American consumers, another prolonged surge in crude oil prices could add pressure to gasoline, diesel and transportation costs.
Markets are now watching closely for the next moves from Washington and Tehran.
With U.S. and Iranian forces exchanging attacks at sea and Iran preparing additional restrictions around the Strait of Hormuz, fears are growing that the latest escalation could develop into a wider energy supply shock.
The coming days could be critical for both global oil markets and efforts to prevent another major escalation between the United States and Iran.