LAGOS – Global oil prices surged over 4% Monday following new U.S. and Iranian military strikes, renewing supply fears along the Strait of Hormuz. The escalation disrupted vital shipping infrastructure in the Middle East.
Brent crude futures climbed $3.10, or 4.08%, to $79.11 a barrel by 0325 GMT. Concurrently, U.S. West Texas Intermediate crude increased $2.95, or 4.11%, to settle at $74.36 a barrel.
The price surge followed weekend combat. U.S. forces executed precision airstrikes on Iranian targets, while Iran’s Revolutionary Guards launched retaliatory attacks against American military installations located in Kuwait and Bahrain.
This conflict directly threatens the Strait of Hormuz, a maritime chokepoint that normally accommodates roughly 20% of global petroleum liquid consumption. Ship-tracking data showed daily transits falling to a five-week low.
The flare-up jeopardizes a fragile June interim peace agreement designed to fully reopen the corridor. The International Energy Agency recently noted that global supply had recovered by 4.1 million barrels per day.
However, global oil output still remains 9.4 million barrels per day below pre-war baselines. Analysts warn that protracted infrastructure vulnerability will continually inject a volatile geopolitical risk premium into global energy markets.
