Brent crude oil prices surged significantly on Monday as escalating tensions in the Middle East intensified, with Israeli strikes targeting Lebanon and explosions reported in Iranian cities undermining hopes for a quick resolution to the broader conflict. This renewed violence has unsettled expectations of stable energy supplies, sending ripples through global markets already strained by disruptions in critical shipping lanes.
In early Asian trading, Brent crude futures climbed by $3.20, or 3.39%, reaching $96.24 per barrel. Meanwhile, US West Texas Intermediate crude increased by $2.87, or 3.17%, to $93.41 per barrel. These gains reversed the losses seen on Friday, when prices had fallen amid optimism about a potential de-escalation between the US and Iran.
The surge in oil prices reflects the broader conflict’s impact, which has pushed prices up by more than 50% since March. Tehran’s ongoing blockade of the Strait of Hormuz—a vital chokepoint responsible for transporting one-fifth of the world’s oil shipments—continues to create a persistent supply shortage, despite efforts by major oil producers to ease tensions.
In a significant development, Israel renewed its airstrikes on Lebanon, while explosions were reported early Monday in Iranian cities including Tehran, Tabriz, and Isfahan. Iran retaliated by launching missiles at Israeli targets on Sunday, further diminishing the chances of a swift ceasefire.
US President Donald Trump expressed confidence that a resolution remains achievable. He reportedly urged Israeli Prime Minister Benjamin Netanyahu to exercise restraint in further attacks, stating in an interview that he maintained firm control over the situation.
Iran has insisted that a ceasefire with Lebanon is a prerequisite for any peace agreement with Washington. Although a truce was announced on June 3 following earlier negotiations, violence has continued despite previous attempts at de-escalation.
In response to the ongoing supply challenges, OPEC+ agreed on Sunday to implement its fourth production increase in as many months. However, analysts cautioned that this move might have limited impact, as several members struggle to meet their output targets due to the Strait of Hormuz blockade and infrastructure issues, including attacks affecting Russian production capacity.
