New York (TDI): Crude oil prices jumped sharply at the start of the week as fears of supply disruptions intensified due to the ongoing war involving Iran, the United States and Israel, with the situation in the Strait of Hormuz triggering widespread concern in global energy markets.
Brent crude futures rose by $1.71, or 1.6%, to reach $110.74 per barrel, while US West Texas Intermediate (WTI) crude gained $0.71, or 0.6%, climbing to $112.25 per barrel in early trading. The latest increase follows last week’s sharp rally, when both benchmarks recorded their biggest price jumps since 2020 amid escalating geopolitical tensions.
Market volatility has been driven largely by disruptions to shipping routes in the Middle East, particularly through the Strait of Hormuz, a critical artery that transports oil from major producers including Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates. The waterway remains largely restricted following Iranian actions targeting shipping since the conflict began in late February.
With supply routes under strain, refiners are scrambling to secure alternative crude sources, especially from the US Gulf Coast and the North Sea. Analysts note that global buyers are aggressively bidding for available cargoes, pushing prices higher at a rapid pace.
Tensions escalated further after US President Donald Trump warned that Washington could target key Iranian infrastructure if the Strait of Hormuz is not fully reopened. His remarks have added to market anxiety over potential further disruptions.
Read More: Oil Prices Jump Sharply as Us Signals Continued Strikes on Iran
Despite the risks, some vessels have continued to pass through the strategic waterway, including tankers and cargo ships from countries considered friendly by Tehran, indicating selective access rather than a complete blockade.
Meanwhile, diplomatic efforts to de-escalate the conflict appear to have stalled. Reports suggest that Iran has declined to engage in upcoming talks in Islamabad, dampening hopes for a near-term ceasefire.
Read More: Oil Prices Rise as Supply Fears Persist Amid Iran War
In a separate development, the OPEC+ group agreed to increase output modestly by 206,000 barrels per day in May. However, analysts caution that the impact may be limited, as several member countries are struggling to boost production due to the ongoing conflict.
