Global oil prices surged on Monday after coordinated U.S. and Israeli strikes on Iranian targets, followed by retaliatory attacks against U.S. and Israeli military positions across the Gulf, raised fears of significant disruptions to energy supply.
Traders reacted to concerns that ongoing hostilities in the region — including assaults on two vessels transiting the Strait of Hormuz, a critical chokepoint for global oil exports — could slow or even halt crude shipments from Iran and other Middle Eastern producers.
Energy analysts warned that prolonged instability may push crude and gasoline prices higher worldwide.
West Texas Intermediate (WTI), the U.S.-produced light sweet crude, rose sharply to $72.79 per barrel early Monday, up 8.6% from Friday’s level of around $67, according to CME Group data. Meanwhile, Brent crude, the global benchmark, traded at $79.41 per barrel, a 9% increase from $72.87 on Friday, marking a seven-month peak, according to FactSet.
Rising oil prices are expected to ripple through global markets, increasing gasoline costs at the pump and driving up the prices of groceries and other essential goods, adding pressure on consumers already grappling with high inflation.