Global oil prices jumped sharply on Monday. Rising tensions linked to Iran and the closure of the Strait of Hormuz tightened energy supplies. Traders reacted quickly to the disruption in one of the world’s most important oil routes.
Crude oil prices climbed close to $110 per barrel. Markets showed strong concern about global supply shortages. The price of West Texas Intermediate rose by 19.37 percent, or $17.31. It reached $108.77 per barrel during trading.
Brent Crude also recorded a major increase. Its price climbed by 17.08 percent, or $16.01. The benchmark reached $109.31 per barrel.
Oil markets have seen dramatic changes during the past week. Prices increased by nearly 35 percent. Analysts describe this surge as the largest weekly rise in 43 years. They link the jump to supply fears and shipping disruptions in the Persian Gulf.
Oil prices last crossed $100 per barrel in 2022. That spike followed the invasion of Ukraine by Russia. The current surge again shows how geopolitical tensions influence global energy markets.
Several Middle Eastern producers have already reacted to the crisis. Kuwait announced on Saturday that it would cut oil production. Kuwaiti officials warned about threats against ships passing through the Strait of Hormuz.
Iraq also reduced oil output. Industry officials say production at three major southern oil fields dropped by nearly 70 percent. Output now stands near 1.3 million barrels per day. Before the conflict with Iran, those fields produced about 4.3 million barrels daily.
The United Arab Emirates continues offshore oil production but follows a cautious strategy. Officials say they want to manage the limited storage capacity.
Several Gulf Arab states now limit production. Storage facilities in the region are filling quickly. As tensions continue, analysts expect more volatility in global oil prices and energy supplies.
