Ammon News - Oil prices could extend gains at Monday's open as the U.S.-Israeli war against Iran entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut in the world's largest supply disruption.

The International Energy Agency on Sunday said more than 400 million barrels of oil ​reserves will begin flowing to the market soon, a record draw aimed at combating price spikes caused by the ​Middle East war. Stocks from Asia Oceania will be released immediately and those from Europe and ⁠the Americas will be available at the end of March, the agency said.

Brent and U.S. West Texas Intermediate crude futures ​have surged more than 40% so far this month to their highest levels since 2022 after U.S.-Israeli attacks on Iran prompted ​Tehran to halt shipping through the Strait of Hormuz - a key chokepoint for a fifth of global oil supply.

U.S. President Donald Trump has urged allies to deploy warships to help secure the strategic gateway. Trump plans to announce a coalition to escort ships through the Strait of Hormuz as soon as this ​week, the Wall Street Journal reported on Sunday.

Trump also threatened more strikes on Iran's Kharg Island oil export hub after the ​United States hit military targets there on Saturday. The threat drew a defiant response of further retaliation from Tehran.

Iranian drones hit a key oil ‌terminal in ⁠Fujairah in the United Arab Emirates shortly after the attacks on Kharg.

Reuters