Oil prices surged on Monday after renewed Israeli strikes on Iran and escalating regional conflict raised concerns about crude oil supply disruptions from the Middle East.
Brent crude climbed above $97 per barrel while West Texas Intermediate (WTI) crude approached $95 per barrel, as investors reacted to reports that Israeli forces targeted an Iranian petrochemical facility and other military sites. The attacks mark the first strike on an Iranian energy asset since a ceasefire was established in April.
Market attention remains focused on the Strait of Hormuz, a critical shipping route that handles approximately 20% of the world’s oil and LNG exports. Any prolonged disruption could significantly impact global energy markets and put additional upward pressure on prices.
Although OPEC+ members have agreed to increase production quotas in recent months, actual output remains below previous levels due to export challenges across the Gulf region. The group recently approved another production increase beginning in July, but concerns over supply security continue to dominate market sentiment.
The latest price rally highlights how geopolitical instability in the Middle East continues to influence global oil markets. Energy companies, service providers, and investors will be closely monitoring developments in the region as the potential for further supply disruptions remains elevated.
Author: phinds