Brent crude held near a five-month high as traders weighed the risk of further Iranian attacks in the Strait of Hormuz against accelerating growth in crude supply passing through the waterway.
The global benchmark traded above $109 a barrel, close to its highest level since May, while the most actively traded WTI futures contract stood around $98 a barrel.
According to Iran's state news agency IRNA, First Vice President Mohammad Reza Aref said on Monday that Iran has "no choice" but to safeguard its national security by controlling the Strait of Hormuz. He made the remarks during a meeting with Russian Prime Minister Mishustin in Tajikistan.
Despite the recent resurgence of conflict surrounding the waterway, Gulf crude exports have continued to accelerate. U.S. Energy Secretary Chris Wright told Fox News that crude flows have recovered to roughly 80% of pre-war levels, although refined product shipments remain constrained.
"The likelihood of higher oil prices is clearly greater," said Hamad Hussain, commodities economist at Capital Economics, adding that the escalation of attacks on ships increases the possibility of "another decline in oil supply and a sustained rise in prices."
Aref said Iran can ensure the safe passage of friendly countries' vessels through the Strait of Hormuz, but warned that "the United States is the culprit behind the current situation and must pay the price for it."
Brent crude futures for December settlement fell 0.1% to $109.40 a barrel. WTI crude futures for December delivery slipped 0.1% to $98.40, while the November contract, due to expire on Tuesday, was little changed at $103.56 a barrel.
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