Oil prices briefly top $120 per barrel as Strait of Hormuz tensions rattle global markets

Oil prices briefly surged above $120 per barrel on Monday as escalating tensions between the United States and Iran unsettled global commodity markets and triggered fresh concerns over supply disruptions.

The sharp rise followed Iran’s move to close the Strait of Hormuz, one of the world’s most critical oil shipping routes. Iranian authorities said the channel would remain shut until the ongoing conflict ends.

The Strait of Hormuz is responsible for handling roughly 20 per cent of the world’s daily oil shipments. Its closure has raised fears of significant supply constraints, as alternative routes for transporting crude oil are longer, slower and more expensive.

West Texas Intermediate crude jumped nearly 30 per cent on Sunday evening, reaching about $120 per barrel as the U.S.-Israel campaign against Iran entered its second week.

However, the rally proved short-lived. Within hours, prices dropped sharply by about 15 per cent, falling back to around $100 per barrel.

The rapid swing highlights the heightened volatility in global oil markets, where thin trading conditions and geopolitical uncertainty can trigger sharp price movements in either direction.