Oil prices surged by more than 4% on Monday as renewed military tensions between the United States and Iran increased fears of disruptions to global energy supplies. The sharp rise came during the first trading session of the week and reflected growing concern over the security of oil shipments through the Gulf.
Brent crude climbed by more than 4%, or $3.10, to trade at $79.11 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude gained 4.11%, or $2.95, and reached $74.36 per barrel. Traders reacted quickly as geopolitical risks intensified across the region.
The U.S. Central Command (CENTCOM) announced that it had completed a new wave of strikes against Iranian targets. According to the statement, U.S. forces hit dozens of targets with precision weapons. In response, Iran’s Islamic Revolutionary Guard Corps said it targeted U.S. military bases in Kuwait and Bahrain.
President Donald Trump said the Strait of Hormuz remains open. However, Iran announced that the waterway is closed to vessels attempting to pass without authorization. The conflicting statements increased uncertainty across global energy markets.
Shipping data from Kpler showed that only six vessels passed through the Strait of Hormuz on Sunday. That marked the lowest daily traffic in the past five weeks. The decline raised fresh concerns about oil exports and supply chains.
The renewed conflict also weakened hopes for a peace agreement between the United States and Iran. Investors now worry that prolonged tensions could delay diplomatic efforts and keep energy markets under pressure.
The International Energy Agency (IEA) reported that oil exports through the Strait of Hormuz reached 4.1 million barrels per day last month. However, that figure remains 9.4 million barrels per day below pre-war levels. The data highlights the continued impact of regional instability on global oil flows.
ANZ Bank said the latest escalation has reduced expectations for a quick end to the conflict. The bank added that uncertainty will likely keep oil prices elevated in the near term.
Tony Sycamore, a market analyst at IG, said investors are taking the latest U.S.-Iran confrontation seriously. He added that markets now believe the current ceasefire remains fragile. As a result, traders expect oil prices to stay volatile until geopolitical risks ease.
