Global markets saw a sharp rise as Oil prices surged on Monday following renewed military tensions in the Middle East. Brent crude and U.S. crude both recorded strong gains during early trading.
Brent crude futures rose by more than $3 per barrel, reflecting growing fears of supply disruption. Market analysts said Oil prices reacted quickly after reports of renewed Israeli strikes in Lebanon and explosions heard in Iran.
Local media reported that Oil prices were further pushed up after blasts were heard in major Iranian cities, including Tehran, Tabriz, and Isfahan. These developments increased concerns about regional instability.
Brent crude climbed $3.20, or 3.39%, reaching $96.24 per barrel. U.S. crude also increased by $2.87, or 3.17%, trading at $93.41 per barrel. The data was recorded during early Asian trading hours.
The rise in Oil prices erased losses from the previous session. On Friday, crude had fallen due to hopes of easing tensions between the United States and Iran.
However, renewed conflict fears quickly reversed market sentiment. Traders now worry that continued escalation could disrupt shipping routes and global oil supply chains.
Explosions reported in Iran added to uncertainty. Analysts said these developments could threaten oil flow through the Strait of Hormuz, a key global shipping route.
The Strait of Hormuz handles nearly one-fifth of the world’s oil supply. Any disruption in the region has a direct impact on global Oil prices.
Despite the spike, some diplomatic signals remain. Former U.S. President Donald Trump said an agreement to reduce tensions was still possible. He also urged restraint in military actions.
Trump reportedly advised Israeli leadership to avoid further escalation. He stated that diplomatic progress was still achievable despite ongoing conflict.
Oil markets also reacted to OPEC+ production decisions. The group recently agreed to increase output, but analysts said the impact may remain limited due to regional disruptions.
Experts believe Oil prices will remain volatile as long as geopolitical tensions continue. Investors are closely watching developments in the Middle East for further direction.
For now, uncertainty continues to drive the energy market, keeping Oil prices highly sensitive to any new developments in the region.
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