Oil prices surged about 7 per cent to their highest levels in months on Monday as Iran and Israel intensified attacks across the Middle East, damaging tankers and raising fears of prolonged supply disruptions from the world’s most important oil-producing region.
Brent crude futures climbed to as high as USD 82.37 a barrel, their strongest since January 2025, in the first trading session after the United States and Israel launched strikes on Iran and killed Supreme Leader Ali Khamenei over the weekend. By 0054 GMT, Brent was trading at USD 78.24 a barrel, up USD 5.37, or 7.37 per cent.
US West Texas Intermediate crude rose USD 4.66, or 6.95 per cent, to USD 71.68 a barrel, after earlier touching USD 75.33, its highest level since June 2025.
Israel on Sunday launched a fresh wave of strikes on Tehran, while Iran responded with new missile barrages, escalating a conflict that has injected renewed uncertainty into global energy markets and the wider economy.
The fighting has begun to affect shipping, with missiles hitting at least three oil tankers off the Gulf coast, killing one seafarer, according to shipping sources and officials. The incidents underscored the vulnerability of maritime routes critical to global oil flows.
Iran has said it has closed navigation through the Strait of Hormuz, a move that has prompted Asian governments and refiners — among the world’s largest crude buyers — to assess emergency stockpiles and contingency plans.
Analysts said further price volatility is likely as traders gauge the risk of sustained disruptions from the Middle East, which accounts for roughly a third of global oil supply.
(Inputs from Reuters) |
