Global oil prices recorded a dramatic surge early on Monday, with both major benchmarks climbing sharply amid escalating tensions in the Middle East. Markets reacted with heightened volatility as the continuation of the conflict and the effective closure of the Strait of Hormuz triggered widespread concern over global energy supply.
The increases pushed both benchmark crude prices above $116 per barrel in what traders describe as a historic market movement.
Sharp increases in benchmark crude prices
Around 04:30 Cyprus time, the price of West Texas Intermediate (WTI), the US benchmark crude, rose by 30.04% to reach $118.21 per barrel. At the same time, the price of Brent crude from the North Sea climbed by 27.54%, reaching $118.22 per barrel. Both benchmarks continued their upward trajectory as trading opened, reflecting strong market reactions to the evolving geopolitical situation.
Market reaction to conflict and Hormuz disruption
The surge in oil prices comes as global markets react to the ongoing war in the Middle East and growing concerns over the Strait of Hormuz. The waterway is one of the most important energy transit routes in the world, and its effective closure has intensified fears about disruptions to global oil supplies. Traders and analysts note that the current market conditions reflect a sharp rise in uncertainty, with investors responding rapidly to developments in the region.