Oil prices jumped on Monday as the United States resumed strikes on Iran despite ongoing negotiations between the two countries.
Israeli troops were also reported to have moved into Lebanon over the weekend, while the US struck targets in Iran, fuelling fears that tensions in the Middle East could escalate rather than ease.
According to Oilprice.com, Brent crude leapt by more than seven per cent, rising from $91.12 to $97.52 per barrel after Iran’s state-affiliated media reported that Tehran was cutting off diplomatic channels with Washington and moving to fully block the strategic Strait of Hormuz.
The reported collapse in diplomacy shattered fragile market optimism, reversing earlier trading dynamics and sending energy markets into a tailspin.
As of Monday evening, WTI crude surged to $94.56 per barrel from about $87, while Brent crude climbed above $97.54 per barrel as investors reacted to the sharp escalation in geopolitical risks.
