Oil prices climbed sharply on Monday, rising by more than US$4 per barrel following renewed Israeli strikes on Iran and fresh attacks on Lebanon, stoking investor fears over the stability of Middle East energy supplies.
As of 06:09 GMT, Brent crude was trading at US$97.15 per barrel, a gain of US$4.42, or 4.47 per cent, compared to the previous session’s close.
US crude advanced by US$4.07, or 4.50 per cent, to reach US$94.61 per barrel.
The jump came after Israel confirmed it had targeted a petrochemical plant in south-western Iran, along with other military sites, marking the first strike on an Iranian energy facility since a ceasefire was agreed on 8 April.
Hopes for a broader resolution to the conflict have since dimmed considerably, with no clear path toward restoring normal crude shipments through the Strait of Hormuz.
That waterway serves as a critical transit corridor for approximately 20 per cent of global oil and liquefied natural gas supplies.
Iran fired missiles at Israeli targets on Sunday in response to Israeli operations in Lebanon, further escalating regional tensions.
Iran’s Ambassador to Moscow, Kazem Jalali, indicated in an interview with Russian newspaper Izvestia published Monday that the strait would remain open, but under new conditions to be determined by Iranian and Omani authorities.
Exports through the Strait of Hormuz have been severely restricted since February, following attacks on Iran and a blockade of Iranian ports by the United States.
Oil prices had fallen on Friday amid expectations that tensions might ease, but have now climbed nearly 60 per cent since late February.
They remain, however, below the March peak when Brent crude approached US$120 per barrel.
In response to ongoing supply disruptions, OPEC+ has moved to raise output targets for a fourth consecutive month.
The group is set to increase collective quotas by nearly 600,000 barrels per day between April and June.
Despite the higher targets, OPEC data shows that actual output fell sharply in April, averaging 33.19 million barrels per day, down from 42.77 million barrels per day in February, largely due to reduced exports from Gulf countries.
Seven OPEC+ members agreed on Sunday to lift production targets by a further 188,000 barrels per day beginning in July.
The broader geopolitical and economic fallout continues to reverberate through global energy markets.
Igor Sechin, chief executive of Russian energy company Rosneft, alleged that US energy companies had benefited from the instability in the Strait of Hormuz, while cautioning that a prolonged disruption could ultimately suppress long-term demand for oil.
Russia, meanwhile, reported a 32.4 per cent year-on-year increase in oil and gas tax revenues in May, buoyed by elevated global prices since the conflict intensified.
The United States has extended a sanctions waiver allowing vulnerable nations to continue purchasing Russian seaborne oil.
With no immediate resolution in sight and key shipping routes under continued pressure, analysts expect oil markets to remain highly sensitive to any further developments in the region.
