The recent oil increases coincided with the escalation of conflict.

Oil prices jumped at the start of trading on Monday, reaching their highest level in over a month, touching $90 a barrel, amid a wave of buying driven by growing fears of potential disruptions in global crude supplies, as tensions escalate between the United States and Iran which have limited oil shipments through the Strait of Hormuz. Brent crude futures rose $1.03, or 1.17%, to $89.13 a barrel, the highest since June 11, continuing their significant gains of 15.9% last week. This was Brent's largest weekly gain since April.

The price of US West Texas Intermediate crude also rose 65 cents, or 0.79%, to $83.14, its highest since June 12. Futures prices had risen 15.5% last week, the largest weekly gain since early March.

The increases coincided with an escalation of the conflict between the United States and Iran, fueling fears of a broader spread of tensions in the Middle East, which includes some of the world's largest oil-producing and exporting countries.

Giovanni Staunovo, analyst at UBS, said: 'I think the oil market is tightening again, which is likely to support oil prices. Repeated attacks on ships transiting the Strait of Hormuz have reduced the number of oil tankers departing the Gulf.'

The conflict in the Middle East escalated over the weekend, as the United States launched a ninth consecutive night of attacks on Iran, while Kuwait and Bahrain reported more Iranian attacks. The Revolutionary Guard announced on Monday that it had disabled two oil tankers following explosions that occurred while they attempted to cross what it described as an unsafe southern passage through the Strait of Hormuz, claiming that the US military had encouraged them to use this passage.

ANZ bank analysts said in a note: 'Supply outlook has turned more negative. The expected recovery in the shipping sector has effectively stalled, with transit volumes through the Strait of Hormuz falling to single digits.' London Stock Exchange Group data showed four ships crossed the Strait of Hormuz on Sunday, down from eight the previous day. The data also showed at least three oil product tankers and one very large crude carrier entering the strait since Friday to load oil. Navigation movement.

In recent days, both sides have targeted maritime navigation, with the United States declaring a naval blockade on Iranian ports, while Iran announced it would target ships violating its navigation rules in the Strait of Hormuz. The British Maritime Trade Operations center reported early Monday that a ship caught fire northwest of the Omani town of Kumzar. Shipping data showed that Gulf countries raised their exports of crude oil and condensates in the first half of July to the highest levels since before the Iranian war broke out in late February, despite a slowdown in oil flows through the Strait of Hormuz as fighting intensified.

The collapse of the US-Iranian truce has renewed concerns about energy supplies passing through the strait. Before the war, about 20% of global oil supplies passed through this waterway. Iran also pressured the Houthis to close the Red Sea corridor if the US launched an attack on Iranian energy infrastructure. Investors are closely watching the crisis developments, amid fears that continued escalation could disrupt oil flows through vital sea lanes, which supports continued upward pressure on crude prices in the coming period. In market developments, Israel increased its natural gas exports to Egypt by about 26.3% to currently 1.2 billion cubic feet per day, compared to about 950 million cubic feet per day in June, after the first phase of the amended gas export agreement between the two countries began implementation. An official said that the additional quantities, about 250 million cubic feet per day, are being supplied from the Leviathan and Tamar fields in the eastern Mediterranean, explaining that the increase was scheduled for last February, but regional tensions and the military escalation between Israel and Iran prevented its implementation on time.

He added that the amended agreement stipulates increasing supplies to Egypt in three phases, starting with pumping about 250 million additional cubic feet per day, then the increase rises to 400 million cubic feet per day by January 2027, with total supplies reaching about 1.4 billion cubic feet per day.

He pointed out that the increase will reach 600 million cubic feet per day by January 2029, raising total supplies to about 1.6 billion cubic feet per day, after the completion of the new pipeline designated to receive the additional quantities and the construction of a gas booster station for the gas produced from the Tamar and Leviathan fields.

On the other hand, thousands of trucks are transporting Iraqi oil through Syria, a sign of the legacy of the Strait of Hormuz crisis, rapidly turning Damascus into the largest export hub in the Middle East. In just a few months, Syria went from exporting none of this fuel to accounting for more than a quarter of Middle East exports. Supplies arrive aboard thousands of trucks that take about four days to reach Syrian ports on the Mediterranean Sea, indicating how the war with Iran is redrawing energy flows in the region.

Gulf countries are seeking ways to reduce their dependence on Hormuz for exports, including using existing pipelines or building new ones, and expanding infrastructure in ports outside the waterway.