Middle East tensions escalated as Iran launched missiles, prompting U.S. strikes and rattling oil markets. Brent and WTI crude prices saw a notable increase. Diplomatic efforts between Tehran and Washington remain stalled, with mixed signals on negotiations. The strategic Strait of Hormuz remains a key focus for traders amid ongoing conflict.

Oil prices sharply rose on Monday afternoon as Iran suspended all indirect talks with the US and vowed to fully close the Strait of Hormuz.

Analysts expect two-sided risks as a slump in demand competes with supply losses from the Middle East