Global oil prices surged sharply on Monday morning in early Asian trading as the conflict involving the United States, Israel and Iran escalated, raising fresh concerns over global energy supply and security.
Brent crude futures briefly traded at 82.37 dollars per barrel, while West Texas Intermediate (WTI) futures reached about 72 dollars per barrel, marking gains of more than eight per cent and 10 per cent respectively compared with their previous closing prices. The rise was reflected across several energy benchmarks beyond the Persian Gulf region.
The spike followed reports that Iran struck three ships passing through the Strait of Hormuz at the weekend as hostilities intensified. The strategic waterway accounts for around 20 per cent of global energy shipments and has long been viewed as a potential flashpoint for wider conflict.
Shipping traffic through the strait has declined since the attacks, fuelling fears of further disruption to oil supplies and pushing prices higher.
While markets continue to monitor developments in the Strait of Hormuz, the Organisation of the Petroleum Exporting Countries (OPEC) has approved an increase in output among member states in a move aimed at stabilising supply.
Prices later eased slightly in early trading, but volatility remains high as geopolitical tensions persist. United States President Donald Trump said the war would continue for as long as it takes for Iran to meet all US demands.
Iran, however, declared on Monday that it was not ready to negotiate with the United States following the assassination of Supreme Leader Ayatollah Khamenei, which took place during earlier talks.
Tehran has continued to launch strikes against Israel and locations in the Middle East where US forces are stationed, and has threatened to target oil infrastructure across the Gulf region, raising the prospect of further disruption to global energy markets.
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