Oil prices climbed sharply on Monday after fresh Israeli strikes on Iran raised concerns that the conflict in the Middle East could drag on and further disrupt global energy supplies.
Brent crude rose more than 4 percent to trade above $97 a barrel, while US crude gained a similar amount to move past $94 a barrel. The jump reversed losses recorded at the end of last week, when hopes of a diplomatic breakthrough had briefly eased pressure on the market.
The latest rally came after Israel said it had carried out strikes on military targets in Iran, including a petrochemical facility in the country’s southwest. Iranian officials confirmed that parts of the complex suffered damage.
The attack has renewed worries about the security of energy infrastructure in the region at a time when global oil markets are already facing supply concerns. For consumers around the world, higher oil prices often translate into more expensive fuel, transport costs and, eventually, pressure on the prices of everyday goods.
Market optimism that the conflict could soon ease has faded in recent days. Traders are increasingly concerned that disruptions around the Strait of Hormuz, one of the world’s most important energy routes, could continue for longer than expected.
The narrow waterway has historically handled around a fifth of global oil and liquefied natural gas shipments. Any restrictions on traffic through the strait can quickly send shockwaves through energy markets.
Adding to concerns, Iran launched missiles at Israeli targets on Sunday in response to earlier Israeli military actions in Lebanon. Despite the escalation, US President Donald Trump has continued to express confidence that a broader agreement to end the conflict remains possible.
Iran has linked any wider peace deal to a lasting ceasefire involving Lebanon. Earlier this month, Israel and Lebanon announced a ceasefire following talks in Washington, but recent developments have raised fresh questions about regional stability.
Another factor drawing attention is Iran’s latest position on the Strait of Hormuz. Iran’s ambassador to Russia said the route would remain open but could operate under new conditions set jointly by Iranian and Omani authorities, including the possibility of transit fees.
Meanwhile, OPEC+ agreed on Sunday to increase oil production for a fourth consecutive month in an effort to ease supply concerns. However, analysts believe the move is unlikely to provide immediate relief.
Several producing countries are struggling to reach their output targets because of disruptions linked to the regional conflict, while Russia continues to face challenges affecting its production capacity. As a result, many market watchers believe the additional barrels announced by OPEC+ may have only a limited impact on current supply shortages.
Oil prices have risen nearly 60 percent since the conflict began in late February, highlighting how closely global energy markets remain tied to developments in the Middle East.
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