Oil Prices Surge Over 4% as Renewed US-Iran Strikes Raise Supply Concerns

SINGAPORE: Global oil prices climbed more than 4% on Monday after the United States and Iran exchanged fresh military strikes, raising fears of further disruptions to energy shipments through the strategically vital Strait of Hormuz.

Brent crude futures rose by $3.10, or more than 4%, to $79.11 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $2.95 to $74.36 per barrel in early trading. The sharp increase reflected growing concerns over the security of one of the world’s most important oil transit routes.

Market sentiment was shaken after the latest military escalation between Washington and Tehran, with Iran claiming it had closed the Strait of Hormuz following recent hostilities. Although U.S. officials maintained that commercial shipping continues through the waterway, vessel traffic has dropped sharply, heightening concerns about global energy supplies.

The Strait of Hormuz normally handles around one-fifth of global oil and liquefied natural gas shipments, making any disruption a major risk to international energy markets. Analysts warned that continued instability could keep crude prices elevated and increase inflationary pressures worldwide.

Despite the latest price surge, some analysts believe markets continue to view the renewed fighting as an escalation within an already fragile conflict rather than the beginning of a prolonged full-scale war. Nevertheless, traders remain closely focused on developments in the Gulf, where further military action could significantly affect global energy supplies.