Global oil prices rallied sharply on Monday, with benchmarks gaining up to 6 per cent as escalating tensions between the United States and Iran heightened fears of supply disruption.
International benchmark Brent crude jumped by 5.5 per cent to $95.32 per barrel from $90.38, reflecting a $4.94 increase in a single session. Similarly, West Texas Intermediate rose by about 6 per cent, gaining $4.97 to settle at $87.56 per barrel from $82.59.
The surge follows reports that the United States seized an Iranian vessel in the Gulf of Oman, triggering renewed geopolitical risk and raising concerns over crude supply flows. Tensions intensified further as Iran reportedly reclosed the Strait of Hormuz, a vital corridor responsible for nearly 20 per cent of global oil shipments.
The sharp price movement underscores the sensitivity of the oil market to geopolitical shocks, with investors reacting swiftly to potential disruptions in supply. The latest gains mark one of the strongest single-day rallies in recent weeks, pushing Brent closer to the $100 per barrel threshold.
U.S. President Donald Trump confirmed that American forces intercepted and disabled an Iranian-flagged vessel, with marines taking control, while Tehran warned of imminent retaliation, escalating the risk premium in global energy markets.
Iran’s Parliament Speaker, Mohammad Bagher Qalibaf, said the country remains engaged in negotiations but is prepared to take necessary measures, signalling a fragile diplomatic outlook ahead of the ceasefire deadline.
Market analysts note that while diplomatic efforts could moderate prices, the current trajectory is being driven by supply-side fears. With nearly one-fifth of global oil flows exposed to disruptions in the Hormuz corridor, any sustained escalation could push prices beyond current levels.
Overall, the combined $4.9–$5 per barrel increase across both benchmarks highlights intensifying market volatility, as geopolitical developments continue to dictate short-term price direction.
SOURCE: dailytimesng.com