Brent crude tops $110 as Hormuz security risks deepen supply fears

Brent crude futures climbed toward $110 per barrel on Monday, snapping a two-day decline, as renewed security risks around the Strait of Hormuz intensified concerns over global oil and shipping flows.

The prices rose over 2.2% to around $110.6 per barrel as of 0805GMT.

The gains came after UK Maritime Trade Operations said a tanker was hit by unknown projectiles north of Fujairah, near the Strait of Hormuz, shortly after US President Donald Trump announced Project Freedom, a plan to guide stranded civilian ships through the contested passage.

The latest incident added to fears that commercial shipping in and around Hormuz could face further disruption, with the narrow strait remaining one of the world’s most important transit routes for crude oil, refined products and liquefied natural gas.

Iran also warned that any US forces entering the strait would be targeted and cautioned commercial vessels and oil tankers against moving without coordination with its military, raising concerns over further constraints on seaborne energy flows.

Trump said the initiative would focus on helping civilian vessels flagged in non-aligned countries exit the waterway and resume operations, with implementation set to begin Monday.

Despite the escalation, Tehran said it is reviewing Washington’s response to its latest 14-point proposal, leaving open the possibility of a diplomatic breakthrough.

Oil prices have surged sharply this year as the Middle East conflict and the effective closure of the Strait of Hormuz disrupted crude, fuel, and LNG flows, forcing traders to price in persistent supply and shipping risks.

Hormuz links the Gulf with the Arabian Sea and is a critical corridor for energy exports from major producers including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Qatar, and Iran.