Oil prices have surged by 7% to their highest levels in months due to the escalation of conflict between Iran and Israel, which has disrupted shipping routes in the Gulf region.
Oil prices jumped by 7% on Monday, reaching their highest levels in months as tensions escalated between Iran and Israel, leading to attacks on oil tankers and disruption of maritime shipping in the Gulf. Futures for Brent crude rose to $82.37, the highest since January 2025, following recent military actions by the US and Israel, including the assassination of Iranian leader Ayatollah Ali Khamenei on Saturday.
In the wake of these developments, Brent crude's gains were curtailed in morning trading, hovering above $76 per barrel at the time of the report. Meanwhile, US West Texas Intermediate crude climbed by $4.66, or 6.95%, reaching $71.68 per barrel after peaking at $75.33 earlier, marking its highest point since June 2025.
The ongoing conflict has created significant uncertainty in the Middle East and poses risks for the global economy, as Israel launched a new wave of strikes on Tehran, provoking a response from Iran with additional missile attacks. The shipping sector is also feeling the impact, as reports emerged detailing disruptions, complicating logistics and potentially escalating prices further as the geopolitical tension persists.
