Oil prices climbed in Asia on Monday morning as escalating conflict in the Middle East fueled concerns over potential supply disruptions in the region.
The U.S. military launched a new wave of strikes against Iran for the ninth consecutive night, according to a post by U.S. Central Command on the social-media platform X. "The strikes will continue degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz," the Central Command said. The Strait is a critical waterway through which one-fifth of the world's oil is transported.
"Concerns of further [supply] disruptions rose over the weekend as attacks between the U.S. and Iran increased," analysts at ANZ Research said in a report. "Observable traffic in the strait all but ceased during [last] week, as Iran warned that the key waterway was effectively closed. The impact on oil flows from the Persian Gulf is likely to be worsened by the U.S. reimposing its blockade of Iranian ports," the analysts added.
Front-month West Texas Intermediate crude oil futures rose 2.3% to $84.42 per barrel, while front-month Brent crude oil futures gained 2.6% to $90.40 a barrel, according to ICE data.
The risk of a more significant escalation has increased following the death of at least one U.S. servicemen in attacks related to Iran, two strategists at OCBC Group Research said. "A larger escalation could revive concerns over a prolonged disruption to [Strait of] Hormuz shipping flows and push oil prices back above" $100 per barrel, the strategists added.
Meanwhile, equity markets across Asia-Pacific were mixed. South Korea's Kospi declined 1.5%, while Australia's S&P/ASX 200 benchmark index edged 0.1% higher. Japan's financial markets were closed for a public holiday on Monday.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
July 19, 2026 20:49 ET (00:49 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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