Global oil prices rose sharply on Monday. Renewed concerns about energy supplies increased market uncertainty. As a result, traders pushed oil prices higher during early market activity.
Global oil prices rose sharply on Monday. Renewed concerns about energy supplies increased market uncertainty. As a result, traders pushed oil prices higher during early market activity.
The gains followed Israel’s decision to expand military operations inside Lebanon. Israeli forces increased their actions against the Iran-backed Hezbollah group. The move came despite a ceasefire that had remained in place for more than six weeks.
Brent crude oil climbed by $2.16, or 2.37%, and reached $93.28 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $2.37, or 2.71%. The benchmark rose to $89.73 per barrel during early trading.
Investors reacted quickly to the latest developments. Many traders now believe that rising tensions could delay a new agreement between the United States and Iran. This shift in sentiment supported higher oil prices.
Last Friday, markets moved in the opposite direction. Optimism about a possible ceasefire extension pushed prices lower. Brent crude lost 1.8%, while WTI crude fell by 1.7%.
U.S. President Donald Trump said on Friday that he would soon decide on a proposal to extend the ceasefire with Iran. The agreement first took effect in early April. An extension would give negotiators more time to continue discussions.
Officials hope the talks can reduce regional tensions. They also want to address concerns surrounding Iran’s nuclear program. However, several important issues still require agreement.
Israel remains a major part of any future deal. Iran has repeatedly stated that Hezbollah should also have a role in discussions related to regional security.
Tony Sycamore, a market analyst at IG, said concerns about the Strait of Hormuz continue to increase. The waterway serves as one of the world’s most important routes for oil and gas exports.
Sycamore warned that security risks could affect shipping activity. He explained that even a reopening of the route may not immediately restore normal operations. He also noted that a political agreement may not quickly increase oil supplies.
Reports released on Friday claimed that Iran placed additional mines in the Strait of Hormuz. The reports followed comments from U.S. Defense Secretary Pete Hegseth. He warned that such actions would violate the current ceasefire arrangement.
Analysts expect oil prices to remain volatile in the coming weeks. Markets will continue to watch political and military developments closely.
