Oil prices rose sharply in early Asian trading on Monday, driven by renewed attacks between Israel and Iran. The exchange of strikes has heightened concerns that the growing conflict could disrupt critical oil exports from the Middle East, a region that remains essential to global energy supply.
Brent crude futures increased by $1.70, or 2.3%, reaching $75.93 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by $1.62, or 2.2%, to $74.60. Both benchmarks had surged more than $4 earlier in the session, reflecting the heightened market volatility.
Latest Oil Prices:
WTI Crude • 73.63 +0.65 +0.89%
Brent Crude • 74.79 +0.56 +0.75%
Murban Crude • 74.31 +0.79 +1.07%
Louisiana Light • 71.63 -0.13 -0.18%
Bonny Light • 78.62 -2.30 -2.84%
Opec Basket • 69.15 +1.68 +2.49%
Mars US • 72.21 -1.06 -1.45%
Gasoline • 2.250 +0.022 +1.00%
Natural Gas • 3.680 +0.099 +2.76%
The latest round of attacks between Israel and Iran comes amid fears of a broader regional conflict. Both sides have exchanged fire, resulting in civilian casualties and raising fears of further escalation. Each side has urged civilians to take safety precautions, signaling that more attacks may be imminent.
On Friday, oil prices surged by 7% at settlement, reaching their highest levels since January after rising more than 13% during the session. Experts are now forecasting further price increases, especially with concerns about potential disruptions in the Strait of Hormuz, a key chokepoint for global oil transportation.
The Strait of Hormuz sees the passage of about 18 to 19 million barrels of oil per day, representing around one-fifth of global oil consumption. Any disruption to this critical shipping lane could have severe consequences for both oil prices and global supply chains.
U.S. President Donald Trump expressed hope on Sunday that Israel and Iran might reach a ceasefire, but also stated that sometimes "countries must fight to the end." While the United States has continued to show support for Israel, Trump declined to comment on whether he had asked Israel to halt its strikes on Iran.
German Chancellor Friedrich Merz noted that he hopes the upcoming G7 summit in Canada could help find a diplomatic resolution to the conflict and prevent its escalation.
On the other hand, Iran has made it clear to mediators in Qatar and Oman that it is unwilling to negotiate a ceasefire while it is still under attack from Israel.
Iran, a member of OPEC, produces approximately 3.3 million barrels per day of oil, with over 2 million barrels per day of that oil being exported. As the region's tensions escalate, concerns about potential disruptions to Iran's oil output and export capacity grow.
OPEC analysts suggest that the organization, alongside its partners such as Russia, has enough spare production capacity to absorb any short-term disruptions in Iranian oil exports. However, the growing geopolitical tensions continue to put upward pressure on oil prices, with markets remaining volatile and uncertain about the duration of the conflict.
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