Global oil prices climbed sharply on Monday as escalating conflict in the Middle East disrupted key supply routes, particularly through the strategically vital Strait of Hormuz.
Read More: OPEC+ agrees to boost oil output when Hormuz reopens
Brent crude futures rose 1.6% to $110.74 a barrel, while West Texas Intermediate gained 0.6% to $112.25, extending last week’s dramatic rally — the largest surge since 2020. The gains come amid fears that prolonged instability could significantly constrain global energy supplies.
The Strait of Hormuz, a crucial corridor for oil exports from Saudi Arabia, Iraq, Kuwait, Qatar and the United Arab Emirates, has seen shipping activity drop sharply following Iranian attacks on vessels since the conflict began in late February.
Oil prices open higher as US-Israeli war with Iran continues to disrupt supply https://t.co/lv8g1YhDeZ https://t.co/lv8g1YhDeZ
— Reuters (@Reuters) April 5, 2026
Tensions escalated further after Donald Trump warned that the United States could intensify military action if Iran does not reopen the vital waterway. Despite the threats, limited shipping has resumed, with some vessels allowed passage under Iran’s selective policy favoring certain countries.
Efforts to de-escalate the crisis appear stalled. Iran has reportedly declined talks with US officials in Islamabad, dimming hopes for a ceasefire.
Meanwhile, the OPEC+ group announced a modest production increase for May. However, analysts note that ongoing conflict and infrastructure disruptions are likely to limit any meaningful rise in output.
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With geopolitical risks mounting and supply routes under threat, markets remain volatile, raising concerns about sustained high energy prices and broader economic repercussions.