Oil prices surged sharply in early trading Monday following U.S. airstrikes on Iran’s nuclear facilities, intensifying concerns over potential conflict in the Middle East and disruptions to global energy supplies.
Brent crude and U.S. benchmark West Texas Intermediate (WTI) both rose more than 4% at the start of trading—reaching their highest levels since January, according to AFP. By around 00:30 GMT, the gains had moderated, with Brent up 2.2% at $79.20 per barrel and WTI up 2.1% at $75.98.
Economists at Mitsubishi UFJ Financial Group (MUFG) warned that “the high uncertainty surrounding the outcome and length of this conflict” could push oil prices up by as much as $10 per barrel. Analysts fear any prolonged military escalation could severely disrupt supply routes and add to market volatility.
Iran, the world’s ninth-largest oil producer, currently pumps around 3.3 million barrels of oil per day. About half of that is exported—primarily to Asian markets—while the remainder serves domestic demand. Additional restrictions or military blockades could further strain global energy supply chains already dealing with instability.
The U.S. strikes come amid escalating tensions over Iran’s nuclear program. The latest developments raise fresh concerns about the security of oil transit routes, especially the Strait of Hormuz, through which a significant share of global oil shipments pass.
As geopolitical tensions mount, traders are bracing for further price swings. Markets remain on edge, closely watching for Iran’s potential response and any further disruptions in the region.
Source: CNN
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