LAGOS — Global crude prices jumped over $3 a barrel Monday as direct military crossfire between Israel and Iran shattered regional truces, threatening critical energy chokepoints and triggering acute supply fears among commodities traders.
Brent crude surged 3.39% to $96.24 a barrel, while West Texas Intermediate climbed 3.17% to $93.41. The spike erased previous losses, pricing a heavy geopolitical risk premium back into energy benchmarks.
The rally intensified following Israeli airstrikes on Beirut, which violated a June 3 Lebanon truce. Momentum accelerated after Israel struck targets inside Iran, including a Mahshahr petrochemical complex, prompting retaliatory Iranian missile salvos.
Market anxieties are heavily tied to the strategic Strait of Hormuz, where a five-month disruption already blocks 20% of global transit. Iran announced Monday it plans to introduce transit fees once the chokepoint reopens.
This escalation coincides with a projected May–July structural supply squeeze. Fitch Ratings warned prices could sustain $100 to $110 levels if the maritime corridor remains closed, severely straining dwindling global crude inventories.
