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Oil Prices Jump Over 3% as US-Iran Military Strikes Stoke Supply Fears
Oil prices surged more than 3% in early trading on Monday after the United States and Iran launched military strikes in the Middle East, escalating regional tensions and raising fears of significant disruptions to global energy supplies.
Crude Benchmarks Rally
The escalation immediately added a significant risk premium to crude prices, with both major benchmarks climbing sharply. According to a Reuters report, the price movements as of 2204 GMT were:
- Brent crude futures climbed $2.67, or 3.51%, to settle at $78.68 a barrel.
- U.S. West Texas Intermediate (WTI) crude rose $2.48, or 3.47%, to $73.89 a barrel.
AdGeopolitical Drivers
The price jump followed reports that Iran had expanded its strikes on Gulf states in response to prior attacks by the United States. This direct military exchange has fueled investor anxiety about the stability of the region and the security of its energy infrastructure.
Market participants are particularly focused on the potential threat to oil tanker traffic through the Strait of Hormuz. The strait is a critical maritime chokepoint for a substantial portion of the world's oil supply, and any disruption to shipments passing through it could have a severe impact on global energy markets.