Oil climbs above $90 after U.S. attack on Iran as markets roiled

The escalation of the military conflict between the United States and Iran has shaken financial markets and immediately pushed oil prices higher.

Brent crude gained more than 2%, reaching around $90.70 per barrel, while U.S. crude was trading near $85.60. At one point during the session, the price increase approached 3%. Investors fear that the renewed tensions could further complicate maritime traffic through the Strait of Hormuz, the corridor through which, before the war began, approximately one-fifth of the world’s oil was transported.

Only five merchant ships a day passed through the area over the weekend. The consequences were also felt in Asian markets: Japan’s Nikkei fell 0.4%, South Korean stocks dropped by as much as 0.5%, while losses were also recorded in Hong Kong and India. In the United States, futures contracts for the S&P 500 and Dow Jones fell by around 0.3%.

European stock markets also remained under the influence of uncertainty. The STOXX 600 hovered near the previous day’s level, while Germany’s DAX fell 0.5%. Energy companies moved in the opposite direction, with their shares rising 0.6%, boosted by the increase in oil prices.

According to analysts, oil could trade in the range of $85-$95 per barrel until there is greater clarity over security and the resumption of full traffic through the Strait of Hormuz.