Markets react to Israeli strikes on Iran and renewed conflict in Lebanon, raising fears over global oil supplies.
Image: Reuters
Oil prices surged more than 4% on Monday after Israeli strikes on Iran and renewed hostilities in Lebanon heightened concerns about energy supplies.
Brent crude rose $4.42 to $97.15 per barrel, while US crude gained $4.07 to $94.61 per barrel.
The rally followed Israeli attacks on military targets and a petrochemical facility in Iran’s Mahshahr region. The strikes came despite reports that Donald Trump urged Benjamin Netanyahu to avoid further escalation.
Investors are increasingly worried about disruptions to shipments through the Strait of Hormuz, a key route for global oil and gas exports. Roughly one-fifth of the world’s oil supply passes through the waterway.
The latest gains reversed losses from Friday, when hopes of de-escalation had pushed prices lower. Oil has risen nearly 60% since the conflict began earlier this year.
Meanwhile, Iran signalled that the Strait of Hormuz would remain open but could face new transit conditions and fees agreed with Oman.
Separately, the OPEC+ group agreed to increase oil production for a fourth consecutive month. However, analysts said the move is unlikely to ease supply concerns significantly, as several producers are already struggling to meet output targets.
The sharp rise in oil prices has renewed concerns about inflation, energy costs and economic growth worldwide.
