Global oil markets surged more than 25 % on Monday with benchmarks reaching levels not seen since mid 2022 as the conflict involving Iran the United States and Israel intensifies. Brent crude jumped over $24 a barrel around a 27 % increase while U.S. WTI crude surged as much as 31 % in trading putting both on track for one of the largest one‑day percentage gains on record as supply fears mount.
Prices were driven higher by widespread concerns that the war could disrupt Middle East energy flows especially in and around the Strait of Hormuz a key chokepoint for about one‑fifth of the world’s oil exports. Markets fear prolonged interruptions to shipments as regional tensions escalate while producers such as Iraq and Kuwait have already cut output amid logistical and storage constraints.
The surge in oil prices has rippled through global markets contributing to sharp declines in equity futures and raising inflation worries worldwide. Analysts say continued conflict could keep prices elevated for the foreseeable future affecting fuel costs shipping and broader economic stability.
In response to the crisis some regional producers are considering output hikes and rerouting strategies but traders remain wary as geopolitical risk premiums push energy prices sharply higher.
