Oil prices surged more than 9% Monday, with both Brent and WTI reaching one-month highs after renewed geopolitical tensions raised concerns over crude exports from the Middle East and shipping through the Strait of Hormuz.
Brent crude settled at $83.30 per barrel, up $7.29 (9.59%), while West Texas Intermediate (WTI) closed at $78.14 per barrel, up $6.73 (9.42%). Both benchmarks recorded their largest daily gains in more than two months as traders quickly priced in the potential for tighter global supplies.
Market sentiment shifted sharply after the United States announced new maritime restrictions targeting Iranian oil exports, renewing uncertainty over vessel traffic through the Strait of Hormuz. Prior to the conflict, the strategic waterway carried roughly one-fifth of global oil and liquefied natural gas shipments, making any disruption a significant concern for energy markets.
Although shipping activity had begun to recover during the recent ceasefire, renewed tensions have slowed the normalization of tanker traffic and restored a sizable geopolitical risk premium to crude prices. Traders are closely monitoring vessel movements, as any sustained reduction in exports from the region could tighten global oil supplies.
The latest developments have also accelerated discussions about expanding pipeline infrastructure that bypasses the Strait of Hormuz, reducing long-term dependence on the waterway for Gulf energy exports. At the same time, continued disruptions to Russian energy infrastructure and ongoing releases from the U.S. Strategic Petroleum Reserve remain additional factors influencing the global supply outlook.