SINGAPORE – Crude oil markets experienced a sharp rally on Monday, with prices surging approximately $3 per barrel after diplomatic efforts between Washington and Tehran collapsed over a U.S.-drafted peace agreement.
The breakdown in negotiations, coupled with continued restrictions through the critical Strait of Hormuz shipping channel, has created significant constraints on worldwide energy supplies.
Brent crude futures rose $3.21, representing a 3.17% increase to reach $104.50 per barrel as of 2203 GMT. Meanwhile, U.S. West Texas Intermediate crude gained $3.06, climbing 3.21% to $98.48 per barrel.
The Strait of Hormuz remains substantially blocked, further contributing to the tight supply conditions that are driving energy costs higher across global markets.
