Oil surges above $90 as US-Iran tensions reignite near Strait of Hormuz

Oil prices surged in early Asian trading Monday after US forces struck two Iranian launchers on Larak Island near the Strait of Hormuz, and Iran launched missiles reportedly targeting a US military in Jordan, reviving fears of a wider conflict and renewed disruption to crude shipments through the key waterway.

At 9:20 am Tokyo time: WTI crude rose to $84.57 a barrel (+1.40%), Brent crude to $89.45 a barrel (+1.53%), and Murban crude to $95.75 a barrel (+4.04%). Brent had earlier climbed above the psychologically important $90-a-barrel level, reaching $90.32.

Murban crude, the United Arab Emirates' flagship export grade, posted the sharpest gain, rising more than 4%, reflecting the market's sensitivity to Gulf supply and shipping risks. The divergence shows that traders are pricing a greater premium into Middle East-linked barrels.

Although the Strait of Hormuz has not been formally closed, ship operators have reportedly reduced transits because of threats and security risks. The immediate market concern is not only whether Iran blocks the waterway, but whether insurers, tanker owners and energy companies judge the route too risky to use. Even a partial slowdown could tighten supplies and push up freight, fuel and petroleum-product prices across Asia.