Global oil prices climbed sharply on Monday as renewed military tensions in the Middle East raised concerns about energy supplies and regional stability. Brent crude rose by more than $3 per barrel, while US crude also posted strong gains after fresh developments increased fears of a prolonged conflict affecting key oil-producing regions.
Markets initially reacted to Israel’s latest strikes in Lebanon, which renewed uncertainty over efforts to reduce hostilities in the region. Investor concerns intensified further after reports of explosions in several Iranian cities, including Tehran, Tabriz and Isfahan. These developments weakened expectations of an early diplomatic breakthrough and heightened worries about disruptions to global energy flows.
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Brent crude futures increased by $3.20, or 3.39%, reaching $96.24 per barrel, while US crude futures gained $2.87, or 3.17%, to trade at $93.41 per barrel. The rally completely reversed losses recorded at the end of last week, when hopes of easing tensions between Washington and Tehran had pushed prices lower. Since March, oil prices have surged by more than 50 percent amid escalating regional instability.
Meanwhile, Iran launched missiles toward Israeli targets in response to recent military actions, further increasing uncertainty in energy markets. Despite the escalation, US President Donald Trump maintained that diplomatic efforts remained on track and expressed confidence that a broader agreement could still be reached. However, investors remained cautious as military activity continued across several fronts.
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A major concern for markets remains the Strait of Hormuz, one of the world’s most important energy transit routes through which roughly one-fifth of global oil supplies pass. Shipping disruptions and restrictions linked to the conflict have strained energy markets, while sanctions and blockades have further complicated the movement of oil from the region. These factors continue to support higher prices despite efforts to stabilize supplies.
In an attempt to ease supply concerns, OPEC+ approved its fourth oil output increase in as many months. However, analysts noted that the move is unlikely to significantly boost available supplies because several member countries are struggling to meet production targets. Ongoing conflict, shipping disruptions and infrastructure damage have limited production capacity, leaving markets focused on geopolitical risks rather than additional output.