Brent Crude Prices Surge to USD110 Amid Supply Fears

(MENAFN) Global oil prices surged sharply on Monday, with Brent crude futures climbing toward $110 per barrel and snapping a two-session losing streak, as escalating security threats around the Strait of Hormuz stoked fresh alarm over the stability of international energy and shipping flows.

By 0805 GMT, Brent had advanced more than 2.2%, reaching approximately $110.6 per barrel — driven by a convergence of military incidents and geopolitical brinkmanship in one of the world's most critical maritime energy corridors.

The rally was ignited after UK Maritime Trade Operations reported that a tanker had been struck by unidentified projectiles north of Fujairah, in close proximity to the Strait of Hormuz — an attack that unfolded shortly after U.S. President Donald Trump unveiled Project Freedom, a plan to escort stranded civilian vessels through the fiercely contested waterway. The incident compounded mounting fears that commercial shipping traffic navigating the narrow strait — a vital transit artery for crude oil, refined petroleum products, and liquefied natural gas — faces worsening disruption.

Iran further inflamed market anxieties by warning that U.S. forces attempting to enter the strait would be directly targeted, while simultaneously cautioning commercial vessels and oil tankers against transiting the passage without prior coordination with its military.

Trump clarified that Project Freedom would concentrate specifically on assisting civilian ships flying flags of non-aligned nations to safely exit the waterway and resume normal operations, with the initiative set to launch Monday.

Despite the intensifying military rhetoric, a diplomatic off-ramp has not been entirely foreclosed. Tehran confirmed it is currently reviewing Washington's latest response to its 14-point proposal — a signal that a negotiated resolution remains at least a possibility.

Oil prices have surged dramatically this year as the Middle East conflict and the effective operational closure of the Strait of Hormuz severely disrupted global crude, fuel, and LNG flows, compelling traders to bake persistent supply and transit risk premiums into their pricing models.

The Strait of Hormuz serves as the critical link between the Gulf and the Arabian Sea, functioning as the primary export corridor for energy giants including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Qatar, and Iran.

MENAFN04052026000045017169ID1111066300