Oil Prices Increase Amid U.S.-Iran Maritime Strikes

SINGAPORE, Sept 7 (Reuters) - Oil prices extended gains on Monday as strikes between the U.S. and Iran on vessels in the Strait of Hormuz and other areas raised concerns about potential supply disruptions from the Middle East. Brent crude futures rose 52 cents, or 0.54%, to $96.80 a barrel by 2354 GMT, while U.S. West Texas Intermediate crude increased by 66 cents, or 0.72%, to $92.14 a barrel. Last week, Brent prices rose 7.8%, and WTI gained nearly 10% following the resumption of attacks by the U.S. and Iran, which led to a reduction in oil flows through the Hormuz Strait, a critical transit route for about 20% of the world's oil supply. U.S. Central Command reported that U.S. forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, a significant oil export hub for Iran. In response, the Iranian Islamic Revolutionary Guard Corps stated that it targeted three oil tankers traveling through unauthorized routes in the Strait of Hormuz, along with three additional U.S. vessels. Maritime intelligence firm Marisks characterized the Saturday attacks as a "major escalation in the maritime conflict," noting that commercial tankers are increasingly being used as tools of economic pressure, blurring the lines between military actions and commercial shipping. Data from analytics firm Kpler indicated that an average of 10 commodity ships transited the Strait of Hormuz daily over the past 10 days, the lowest rate since May. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, announced that a restricted zone would be established outside the Strait of Hormuz in the coming days. OPEC+ decided to maintain its oil output policy unchanged for October during a meeting on Sunday, stating that new quotas need to be agreed upon before making further output decisions. Analysts from ANZ suggested that a prolonged standoff characterized by military actions from both the U.S. and Iran is likely, which could delay the full recovery of oil supply from the Middle East. They anticipate that exports will remain constrained through the remainder of 2026, with a gradual reopening expected late in Q4 2026, and a return to pre-war throughput not anticipated until late Q1 or early Q2 of 2027.