Brent oil nears $110 as Hormuz tensions shake supply routes

Brent crude prices rebounded sharply on Monday, approaching the $110 mark after a brief decline, as rising tensions in the Strait of Hormuz fueled concerns about global oil supply and shipping security. Prices were up more than 2% in early trading, reflecting growing unease in energy markets.

Security risks intensify in Hormuz

The uptick followed reports from UK maritime authorities indicating that a commercial tanker was struck by unidentified projectiles near Fujairah, close to the strategic waterway. The incident coincided with the announcement by US President Donald Trump of a new initiative, dubbed “Project Freedom,” aimed at escorting civilian vessels through the contested strait.

Global energy corridor under threat

The Strait of Hormuz remains a critical chokepoint for global energy flows, linking Gulf producers to international markets. A significant portion of the world’s crude oil, liquefied natural gas (LNG), and refined fuels passes through this narrow route, making any disruption a major risk for energy-importing countries such as Türkiye and European economies.

Iran warnings raise stakes

Iran signaled a hardline stance, warning that foreign military presence in the strait would be considered a target. Authorities in Tehran also advised commercial shipping to coordinate movements with its military, further complicating navigation and raising the likelihood of supply constraints in global oil markets.

Diplomatic signals amid escalation

Despite the rising tensions, Iranian officials indicated they are assessing Washington’s latest diplomatic response to a previously submitted proposal, suggesting that negotiations remain possible. Meanwhile, the US initiative is expected to begin immediately, focusing on assisting non-aligned vessels stranded in the region.

Oil prices have surged throughout the year as instability in the Middle East and restricted access to key shipping routes forced traders to factor in prolonged supply risks. The evolving situation in the Strait of Hormuz continues to shape market expectations and energy security calculations worldwide.