Global oil prices surged on Monday after renewed military tensions in the Middle East raised fears of prolonged supply disruptions and further instability in energy markets.
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Brent crude futures climbed by more than $3 a barrel, rising 3.39 percent to $96.24 per barrel, while US West Texas Intermediate crude gained 3.17 percent to reach $93.41 per barrel. The sharp increase reversed losses recorded at the end of last week when hopes for de-escalation had briefly eased market concerns.
The latest rally was triggered by Israeli strikes in Lebanon on Sunday, followed by Iranian missile attacks on Israeli targets. Additional reports of explosions in several Iranian cities, including Tehran, Tabriz and Isfahan, further heightened investor concerns about the risk of a broader regional conflict.
Market participants are closely monitoring developments because of their potential impact on the Strait of Hormuz, one of the world’s most important energy shipping routes. The strategic waterway handles a significant share of global oil and liquefied natural gas exports, making any disruption a major concern for international markets.
Despite the escalation, US President Donald Trump expressed confidence that diplomatic efforts to end the conflict remain on track. Reports indicated that Trump urged Israeli Prime Minister Benjamin Netanyahu to avoid further military action, arguing that ongoing negotiations should be given a chance to succeed.
Analysts noted that fears over supply shortages continue to support higher oil prices, especially as tensions persist between Iran, Israel and their regional allies. The broader conflict has already contributed to a substantial increase in oil prices since March.
Meanwhile, the OPEC+ alliance agreed to another increase in oil production, marking its fourth output rise in as many months. However, market observers believe the move may have only a limited impact on supply because several producers are struggling to meet production targets due to geopolitical disruptions and infrastructure constraints.
Read More: OPEC+ agrees fourth oil quota hike since Hormuz closure
Investors are expected to remain focused on developments in the Middle East as volatility continues to shape global energy markets.