Global oil prices rise on Monday as fears of supply disruptions intensify due to the ongoing US-Israeli conflict with Iran. The Strait of Hormuz, a key shipping route, remains largely closed after Iranian attacks on oil tankers.
Brent crude futures climbed $1.71, or 1.6%, to $110.74 per barrel. U.S. West Texas Intermediate (WTI) crude increased $0.71, or 0.6%, reaching $112.25 per barrel. Traders cite supply uncertainties and regional instability as the main drivers behind the prices rise.
Last Thursday, WTI surged more than 11% and Brent soared nearly 8%, marking the largest absolute increase since 2020. The spike followed US President Donald Trump’s threats to continue military attacks on Iran, heightening market volatility.
The Strait of Hormuz, which transports oil from Iraq, Saudi Arabia, Qatar, Kuwait, and the UAE, remains a critical chokepoint. Shipping disruptions have forced refiners in the US and UK North Sea to seek alternative crude sources. “Global buyers are bidding aggressively for Gulf Coast barrels, and Brent is rallying even faster,” said the Schork Group in a market note.
Despite the tension, some vessels have crossed the Strait of Hormuz since Thursday, including ships operated by Oman, France, and Japan. Iran allows passage for vessels from countries it considers friendly, but the situation remains fragile.
Efforts to negotiate a ceasefire have stalled. Iran has refused meetings with US officials in Islamabad, signaling that the conflict may continue. This uncertainty contributes to further prices rise in the global oil market.
OPEC+ has agreed to a modest production increase of 206,000 barrels per day for May. However, many member countries cannot raise output due to the ongoing war, limiting the impact of this decision.
Russian oil supply has also been disrupted by drone attacks on its Baltic Sea export terminal. Loadings resumed at the Ust-Luga terminal on Saturday, but supply interruptions continue to pressure global markets.
Analysts warn that ongoing Middle East tensions and geopolitical instability may keep oil prices rise in the near term, impacting energy costs worldwide and influencing inflation in major economies.
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