LONDON: Oil Prices climbed more than 3% on Monday after fresh military strikes between the United States and Iran raised concerns over energy supplies through the Strait of Hormuz.

Brent crude futures gained $2.47, or 3.25%, to reach $78.48 a barrel.

Meanwhile, US West Texas Intermediate (WTI) crude rose $2.35, or 3.29%, to $73.76 a barrel.

Analysts linked the gains to fears of supply disruptions in one of the world’s most important energy routes.

UBS analyst Giovanni Staunovo said traders would closely monitor the number of tankers entering the Gulf.

He said fewer inbound vessels could affect oil supplies. As a result, markets have added a risk premium to crude prices.

Fresh US and Iranian strikes over the weekend intensified concerns about a wider regional conflict.

Iran said it had targeted US military facilities across the Gulf on Sunday.

Tehran also claimed it had closed the Strait of Hormuz.

On Monday, Iran’s Revolutionary Guards said they had attacked US military bases in Kuwait and Bahrain.

Before the conflict began in February, about 20% of global oil and liquefied natural gas shipments passed through the Strait of Hormuz.

Meanwhile, ANZ analysts said shipping companies had adopted a cautious approach because of growing security risks.

Ship-tracking data showed vessel traffic through the strait fell to a five-week low on Sunday.

According to Kpler, only six vessels crossed the waterway that day.

Moreover, the renewed fighting has raised doubts about the future of the interim US-Iran agreement signed last month.

The agreement aimed to reopen the strait and end the conflict after further negotiations.

The International Energy Agency said global oil supply increased by 4.1 million barrels per day in June.

However, production remained 9.4 million barrels per day below pre-war levels.

US President Donald Trump said commercial shipping continued through the Strait of Hormuz.

However, Iran insisted it had closed the waterway after a vessel allegedly violated its approved route.

Goldman Sachs said expanding regional pipeline networks could reduce future risks.

The bank expects bypass capacity to exceed 14 million barrels per day by the end of 2028.

Meanwhile, Iranian oil stored at sea continues to increase after exports rose during the temporary peace agreement.

However, demand has slowed because Chinese independent refiners are buying cheaper crude from Iraq, the UAE and Qatar.

The Abu Dhabi National Oil Company (Adnoc) set the August official selling price of Murban crude at $80.01 per barrel.

That compares with $101.48 per barrel in the previous month.

Elsewhere, Ukraine’s Security Service said it struck an oil depot in Russia’s Stavropol region overnight.

It also claimed attacks on oil storage tanks at the Port of Kavkaz in Russia’s Krasnodar region.