The Crossbill News Desk
Oil prices surged to their highest levels since January on Monday, following the United States’ weekend strikes on Iranian nuclear facilities, which raised fears of potential supply disruptions in the already volatile Middle East.
Brent crude futures jumped $1.88, or 2.44%, to $78.89 per barrel as of 11:22 GMT, while US West Texas Intermediate (WTI) crude rose $1.87, or 2.53%, to $75.71, Reuters reported.
Both benchmarks had earlier surged over 3% in early trading, reaching intraday highs of $81.40 for Brent and $78.40 for WTI — their highest levels in five months — before retreating slightly.
The spike in prices came after US President Donald Trump announced that American forces had “obliterated” Iran’s major nuclear sites in coordinated strikes with Israel over the weekend. The escalation has stoked fears of a broader regional conflict, as Tehran vowed to respond forcefully.
Iran, a key member of the Organization of the Petroleum Exporting Countries (OPEC) and the bloc’s third-largest producer, has long been seen as a critical player in global energy markets.
Traders and analysts are now bracing for the possibility that Iran may retaliate by targeting oil transport routes, particularly the Strait of Hormuz — a vital shipping chokepoint through which roughly 20% of the world’s crude oil passes.
Iran’s state-run Press TV reported that the Iranian parliament had approved a motion to shut the Strait of Hormuz. Although Iran has issued similar threats in the past, it has never acted on them. Still, the prospect of a closure is heightening market anxiety.
“The risks of damage to oil infrastructure ... have multiplied,” June Goh, senior analyst at Sparta Commodities told Reuters.
She warned that even with alternative pipeline routes available, a full closure of the Strait would significantly constrain global oil exports, with many shippers likely to avoid the region altogether.
Since the conflict escalated on June 13, Brent has climbed 13%, while WTI has risen by around 10%. However, analysts caution that without concrete supply disruptions, the current geopolitical risk premium may be short-lived.
Ole Hansen, head of commodity strategy at Saxo Bank, noted in a market commentary that the recent rally could prompt traders to unwind some long positions, potentially capping further gains unless tensions continue to escalate or translate into actual supply shocks.
Brent crude futures jumped $1.88, or 2.44%, to $78.89 per barrel as of 11:22 GMT, while US West Texas Intermediate (WTI) crude rose $1.87, or 2.53%, to $75.71, Reuters reported.
Both benchmarks had earlier surged over 3% in early trading, reaching intraday highs of $81.40 for Brent and $78.40 for WTI — their highest levels in five months — before retreating slightly.
The spike in prices came after US President Donald Trump announced that American forces had “obliterated” Iran’s major nuclear sites in coordinated strikes with Israel over the weekend. The escalation has stoked fears of a broader regional conflict, as Tehran vowed to respond forcefully.
Iran, a key member of the Organization of the Petroleum Exporting Countries (OPEC) and the bloc’s third-largest producer, has long been seen as a critical player in global energy markets.
Traders and analysts are now bracing for the possibility that Iran may retaliate by targeting oil transport routes, particularly the Strait of Hormuz — a vital shipping chokepoint through which roughly 20% of the world’s crude oil passes.
Iran’s state-run Press TV reported that the Iranian parliament had approved a motion to shut the Strait of Hormuz. Although Iran has issued similar threats in the past, it has never acted on them. Still, the prospect of a closure is heightening market anxiety.
“The risks of damage to oil infrastructure ... have multiplied,” June Goh, senior analyst at Sparta Commodities told Reuters.
She warned that even with alternative pipeline routes available, a full closure of the Strait would significantly constrain global oil exports, with many shippers likely to avoid the region altogether.
Since the conflict escalated on June 13, Brent has climbed 13%, while WTI has risen by around 10%. However, analysts caution that without concrete supply disruptions, the current geopolitical risk premium may be short-lived.
Ole Hansen, head of commodity strategy at Saxo Bank, noted in a market commentary that the recent rally could prompt traders to unwind some long positions, potentially capping further gains unless tensions continue to escalate or translate into actual supply shocks.
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