Brent crude oil futures traded above $90 a barrel on Monday morning as increased hostilities between the US and Iran raised concerns over global oil supplies.
At 10.04 am on Monday, September Brent oil futures were at $90.33, up by 2.53 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $83.63, up by 2.26 per cent. July crude oil futures were trading at ₹8142 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹7945, up by 2.48 per cent, and August futures were trading at ₹8103 against the previous close of ₹7910, up by 2.44 per cent.
A statement by the US Central Command said its forces successfully completed the ninth consecutive evening of strikes against Iran on July 19.
It targeted Iranian military command centres, air defence and coastal surveillance sites, maritime capabilities, missile and drone launch sites, and communications networks to further diminish Iran’s ability to attack commercial vessels and civilian mariners transiting the Strait of Hormuz, US Central Command said.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said ICE Brent broke above $90 a barrel on Monday morning with no let-up in the escalation in the Persian Gulf. The US and Iran continue to exchange strikes, which are proving to be deadly for both sides.
“If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Persian Gulf. Vessel flows have essentially ground to a halt. LSEG data show that only two outbound visible oil tankers transited the Strait of Hormuz, with no inbound traffic. Flows are essentially back to where they were before the Memorandum of Understanding,” they said.
Meanwhile, reports are that Iran told the Houthis in Yemen to essentially shut the Bab el-Mandeb Strait if the US attacks Iranian power infrastructure. This strait is important for vessel movements through the Red Sea. The Saudis have relied heavily on this route since the war began to bypass the Strait of Hormuz. If closure occurs, tankers would have to enter and exit the Red Sea via the Suez Canal. This would make Saudi oil exports to Asia a lengthier and costlier affair, they said.
The issue for the oil market is that SPR (strategic petroleum reserve) releases, which have offered some relief during the war, are set to cease around the end of this month. This leaves the market relatively more vulnerable.
Clearly, there’s always the potential for SPRs to be tapped further. The US may be willing to do so, given that the 172 million barrels it’s in the process of releasing are structured as an exchange rather than a pure release. So, these barrels will be returned to the SPR plus interest in the form of additional supply, they said.
July natural gas futures were trading at ₹278.70 on MCX during the initial hour of trading on Monday against the previous close of ₹281.70, down by 1.06 per cent.
On the National Commodities and Derivatives Exchange (NCDEX),August dhaniya contracts were trading at ₹16072 in the initial hour of trading on Monday against the previous close of ₹15886, up by 1.17 per cent.
August turmeric (farmer polished) futures were trading at ₹21348 on NCDEX in the initial hour of trading on Monday against the previous close of ₹21750, down by 1.85 per cent.
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Published on July 20, 2026
