As of 02:16 ET (06:16 GMT) on Monday, Brent Oil Futures expiring in August advanced 4.7% to $97.44 per barrel, while West Texas Intermediate (WTI) crude futures climbed 4.5% to $94.62 per barrel. Both benchmarks had ended the previous week with modest gains, but had fallen sharply late last week on hopes of de-escalation, with Brent settling near $93 and WTI around $90 on Friday.<\/p>\n
The latest upside move followed Israeli strikes on military sites in western and central Iran, as well as a petrochemical facility near Mahshahr. This operation marked one of the most significant attacks on Iranian energy-linked infrastructure since a ceasefire was reached in April.<\/p>\n
The strikes came after Iran launched several rounds of missiles at Israeli targets, itself a response to Israeli attacks on the outskirts of Beirut. According to reports, U.S. President Donald Trump had urged Israeli Prime Minister Benjamin Netanyahu not to retaliate against Iran\u2019s missile attack.<\/p>\n
The escalation has cast fresh doubt on a fragile U.S.-brokered ceasefire extension between Israel and Lebanon that took effect last week. The renewed hostilities have heightened market concerns about potential disruptions to oil flows through the Strait of Hormuz, a key shipping route that handles roughly a fifth of global oil consumption.<\/p>\n
On the supply side, OPEC+ agreed to another increase in oil output quotas for July of 188,000 barrels per day, continuing the gradual rollback of voluntary production cuts. However, a blockage of exports from the Persian Gulf has prevented most producers from implementing the additional output, limiting the immediate impact of the quota increase on global supply.<\/p>\n
The combination of heightened geopolitical risk, questions over the durability of ceasefire arrangements, and constrained implementation of OPEC+ output increases has contributed to the sharp rebound in crude prices at the start of the week.<\/p>\n
What caused the latest jump in oil prices?<\/strong> How high did Brent and WTI crude futures trade?<\/strong> What is the status of OPEC+ production policy?<\/strong> Why is the Strait of Hormuz significant for oil markets?<\/strong>
Oil prices climbed nearly 5% after Israel conducted strikes on Iranian military sites and a petrochemical facility near Mahshahr, escalating regional tensions and raising concerns about potential supply disruptions.<\/p>\n
As of 02:16 ET (06:16 GMT) on Monday, Brent Oil Futures for August were up 4.7% at $97.44 per barrel, while WTI crude futures rose 4.5% to $94.62 per barrel.<\/p>\n
OPEC+ agreed to increase oil output quotas for July by 188,000 barrels per day as part of a gradual rollback of voluntary production cuts, but a blockage of exports from the Persian Gulf has limited the implementation of this additional output.<\/p>\n
The Strait of Hormuz is a critical maritime corridor that handles roughly a fifth of global oil consumption, so any risk of disruption there can quickly influence crude prices.<\/p>\n