Crude oil markets experienced their sharpest spike in months on Monday, with prices climbing over 8% as military tensions between Iran and Israel intensified, threatening vital shipping lanes in the Middle East.
International Brent crude reached a peak of $82.37 per barrel before settling at $79.34, marking an increase of $6.47 or 8.88% by late Monday. Meanwhile, U.S. West Texas Intermediate crude climbed $5.36 to $72.38 per barrel, after earlier touching $75.33.
The price surge followed Israel’s launch of fresh military strikes against Tehran on Sunday, prompting Iran to respond with additional missile attacks. This escalation came one day after the death of Supreme Leader Ali Khamenei, creating widespread uncertainty across the Middle East and global financial markets.
Maritime operations in the region suffered significant casualties, with at least three oil tankers sustaining damage near the Gulf coast. One crew member was killed as vessels became caught in the crossfire during Iran’s retaliatory strikes against U.S. and Israeli targets, according to shipping industry sources and government officials who spoke Sunday.
The disruption to petroleum shipments from this crucial oil-producing area could translate to higher fuel costs for consumers as global energy markets react to supply concerns.
