Oil prices jumped sharply on Monday as renewed military escalation in the Middle East heightened concerns over further disruptions to global energy supply. Brent crude rose 5.8% to settle at $114.44 per barrel, while U.S. West Texas Intermediate (WTI) gained 4.4% to $106.42. The move marked one of the largest daily increases since the ceasefire between the United States and Iran was established in early April.
The rally followed reports that Iran launched attacks on multiple vessels in the Strait of Hormuz and struck a key oil facility in the United Arab Emirates, triggering fires and prompting defensive responses. The escalation comes amid U.S. efforts to reopen the critical shipping corridor, which appear to have intensified tensions.
The Strait of Hormuz remains a central risk factor for global markets. Prior to the conflict, the waterway handled roughly 20% of global oil and liquefied natural gas flows, and disruptions continue to severely constrain supply.
Despite a ceasefire formally remaining in place, hostilities have increased, with both sides engaging in military actions and expanding operational zones. Reports of additional vessel strikes and threats to regional infrastructure underscore the fragility of the current situation.
Looking ahead, markets remain highly sensitive to geopolitical developments. Continued disruptions to shipping and infrastructure are reinforcing a sustained risk premium in oil prices, with analysts warning that prolonged instability could keep crude above $100 and further pressure global energy costs.