Global oil prices surged sharply on Monday, climbing more than 25% to their highest levels since mid-2022 as escalating geopolitical Strait of Hormuz tensions in the Middle East disrupted supply and alarmed energy markets.
Read More: Oil surges as Hormuz disruption shakes global supply
Benchmark Brent crude rose nearly 27% to $117.65 per barrel in early trading, while US West Texas Intermediate (WTI) crude jumped about 28% to $116.62. During the session, both benchmarks briefly touched around $119 per barrel, marking one of the largest single-day gains in recent history. The spike follows strong increases last week, when Brent rose 27% and WTI gained over 35%.
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Markets have grown increasingly nervous as the conflict between the United States, Israel, and Iran unfolds near the strategic Strait of Hormuz, a critical shipping route that normally carries about one-fifth of the world’s oil supply. Disruptions to tanker movements and rising security risks have already slowed shipping activity in the region, leaving many countries—particularly Asian importers—vulnerable to supply shortages.
Several oil-producing nations have begun cutting production as shipments from the Middle East face logistical hurdles. Iraq’s oil output from its major southern fields has reportedly dropped by around 70%, falling to about 1.3 million barrels per day because exports through the Strait of Hormuz have stalled. Meanwhile, Kuwait Petroleum Corporation has also started reducing production and declared force majeure on shipments.
The situation has been further complicated by leadership changes in Iran following the appointment of Mojtaba Khamenei as the country’s new supreme leader after the death of his father, Ali Khamenei. Analysts say the move signals that hardline policies are likely to continue during the conflict.
Read More: Oil prices surge amid rising Middle East conflict risks
Energy experts warn that oil prices could remain elevated for weeks or even months, even if fighting subsides soon. Damaged infrastructure, disrupted shipping routes and ongoing security threats could continue to affect global supply chains.
The price surge has also sparked political reactions in the United States, with calls to release crude from strategic reserves to help stabilize markets and ease pressure on consumers.