Brent and West Texas Intermediate (WTI) crude prices have surged more than 40 per cent this month to their highest levels since 2022, driven by mounting geopolitical tensions and fresh security concerns across the Middle East.
Oil markets extended gains on Monday following renewed fears over the stability of major energy infrastructure in the region.
The rise comes after US President Donald Trump called for international cooperation to protect the Strait of Hormuz, one of the world’s most critical energy corridors.
By 04:00 GMT, Brent crude futures climbed US$1.27 to US$104.41 per barrel, building on a US$2.68 increase recorded in the previous session.
US WTI crude rose by US$0.54 to US$99.25 per barrel, continuing its near-US$3 advance from Friday.
The spikes reflect deepening uncertainty in global supply chains following the outbreak of hostilities between the United States, Israel, and Iran.
The conflict, known as Operation Epic Fury, erupted after an offensive that led to the death of Iranian Supreme Leader Ayatollah Ali Khamenei.
Tehran retaliated with strikes across several Middle Eastern sites, leading to heightened instability and disruptions in oil shipments through the Strait of Hormuz.
The strait, a narrow route between Oman and Iran, handles approximately 20 per cent of the world’s daily crude exports.
Military escalation and logistical disruptions have forced some refineries to halt operations, triggering tighter supply conditions and further price pressure.
Industry analysts have warned that prolonged obstruction could have long-term implications for freight insurance costs and fuel supply security.
Over the weekend, President Trump indicated the possibility of further strikes on Iran’s Kharg Island, which facilitates around 90 per cent of the nation’s crude exports.
Earlier attacks on the island’s military installations had already disrupted terminal operations, adding to global market volatility.
Shortly thereafter, Iranian drone strikes damaged an oil terminal at Fujairah in the United Arab Emirates, one of the Gulf’s primary export hubs located outside the Strait of Hormuz.
Four sources cited by Reuters reported that oil loading operations in Fujairah have resumed, though it remains uncertain whether activity has returned to normal capacity.
Fujairah plays a strategic role in exporting roughly one million barrels per day of Murban crude, accounting for about 1 per cent of total global demand.
In response to the growing crisis, President Trump reiterated his call for allied nations to share responsibility for securing the Strait of Hormuz and confirmed ongoing discussions with several governments.
Despite continued communication between Washington and Tehran, US officials remain sceptical of the prospect of negotiations to ease tensions.
To stabilise markets, the International Energy Agency (IEA) announced a plan to release more than 400 million barrels from global oil reserves.
The coordinated release aims to temper surging prices and offset the supply shock generated by the regional conflict.
Immediate contributions are expected from Asian and Oceanian reserves, while additional volumes from Europe and the United States are scheduled for release by the end of March.
