Brent crude oil surged significantly as hostilities between the United States and Iran escalated over the weekend, including targeting ships attempting to pass through the Strait of Hormuz and attacking a key oil facility in Kuwait.

　　The global benchmark crude price rose more than 3% to around $91 per barrel, the highest level since mid-June. The WTI crude oil price is approaching $85 per barrel. Tehran said that a ceasefire between the United States and Iran has effectively collapsed, and there are fears that energy shipments through the Strait of Hormuz may face even more severe disruptions.

On Sunday, the Iranian Navy said that four unidentified vessels attempting to transit through the Strait of Hormuz via an “unsafe channel” were intercepted after ignoring warnings. The Navy said that two of the ships “suffered an accident and were forced to stop,” while the other two “abandoned their route and turned back.” Over the past week, the tit-for-tat attack actions between the U.S. and Iran have expanded from purely military targets to infrastructure such as bridges, public utility facilities, and ports, suggesting there is little hope of returning to a fragile ceasefire. Kuwait Petroleum Corporation said that Iran attacked a petroleum facility on Saturday, causing major losses.

Saul Kavonic, senior energy analyst at MST Marquee, said that the upgraded attack actions over the weekend “show that there is still room for this conflict to expand further and last longer.”