Global crude oil prices climbed sharply after renewed military exchanges between the United States and Iran heightened concerns over the security of energy supplies through the Strait of Hormuz, one of the world’s most important oil shipping routes.
According to reports, Brent crude rose 3.3 percent in early Monday trading to $78.50 per barrel, rebounding from a previous low of $70.14 per barrel. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) crude increased 3.4 percent to $73.83 per barrel, reflecting growing market anxiety over escalating geopolitical risks.
Energy analysts say the renewed tensions have prompted traders to factor in a higher geopolitical risk premium, driving oil prices upward amid fears of potential supply disruptions.
Omid Shokri, an energy expert and senior visiting fellow at George Mason University, said crude prices could climb above $80 per barrel if the conflict continues to intensify. He noted that the market is reacting to uncertainty surrounding the stability of the region and the possibility of disruptions to global energy supplies.
Shokri warned that the greatest risk would emerge if the conflict interferes with oil tanker traffic through the Strait of Hormuz or damages oil production and export infrastructure in the Gulf region. Any disruption in these critical supply routes could have a significant impact on global oil markets.
He also said that although a ceasefire understanding between Washington and Tehran remains in place, uncertainty over its durability continues to influence market sentiment. Even if tensions ease temporarily, oil prices are expected to remain volatile as traders closely monitor developments in the region.
Market analysts believe the duration of elevated oil prices will largely depend on whether the conflict leads to prolonged disruptions in crude oil production, transportation, or exports. Until supply risks subside, energy markets are likely to remain highly sensitive to geopolitical developments in the Middle East.
