Oil prices extended gains above $105 per barrel on Monday, driven by escalating geopolitical tensions and concerns over global supply disruptions as the U.S.–Israeli war against Iran entered its third week.
The escalation has heightened risks to oil infrastructure and sustained tensions around the Strait of Hormuz, a critical route for global crude shipments.
Brent and U.S. crude benchmarks have surged sharply in recent weeks, reflecting fears of prolonged conflict and potential supply shortages in the Middle East.
What the data is saying
Oil prices rose further as geopolitical tensions intensified, and supply risks remained elevated.
Brent crude futures increased by $2.01, or 1.95%, to $105.15 per barrel by 2338 GMT, after settling $2.68 higher in the previous session on Friday.
U.S. West Texas Intermediate (WTI) crude climbed $1.61, or 1.63%, to $100.32 per barrel, following a nearly $3 gain in the prior trading session.
- Both contracts have surged more than 40% this month to their highest levels since 2022.
- The rally followed U.S.–Israeli attacks on Iran, which prompted Tehran to halt shipping through the Strait of Hormuz.
- The Strait of Hormuz is a key chokepoint for about one-fifth of global oil supply.
The continued closure of the waterway and risks to regional infrastructure have added to concerns about further disruptions in global energy markets.
Get up to speed
The current oil market rally is largely driven by escalating hostilities between the United States, Israel, and Iran, which have intensified over the past three weeks.
The Strait of Hormuz remains central to the crisis, as it serves as one of the world’s most important oil transit routes. Any prolonged disruption could significantly impact global supply flows.
- The Strait of Hormuz accounts for roughly a fifth of global oil shipments.
- Iran’s Kharg Island oil export hub handles about 90% of the country’s oil exports.
- U.S. President Donald Trump threatened further strikes on Kharg Island after weekend military actions.
In response, Iran vowed additional retaliation, signalling that the conflict may persist.
Separately, Iranian drones reportedly struck a key oil terminal in Fujairah in the United Arab Emirates shortly after the Kharg attacks. Oil loading operations at Fujairah have since resumed, according to four sources, though it remains unclear whether activity has fully returned to normal.
Fujairah, located outside the Strait of Hormuz, exports about 1 million barrels per day of the UAE’s flagship Murban crude, representing roughly 1% of global oil demand.
More Insights
The International Energy Agency (IEA) said on Sunday that more than 400 million barrels of oil reserves would begin flowing into the market soon. The move represents a record draw aimed at mitigating price spikes linked to the Middle East conflict.
The development is intended to provide additional supply support amid fears of prolonged disruptions.
Meanwhile, diplomatic efforts appear to have stalled.
- According to three sources, the Trump administration has rebuffed efforts by Middle Eastern allies to initiate negotiations.
- Iran has rejected the possibility of a ceasefire until U.S. and Israeli strikes end.
- The lack of diplomatic progress has reduced hopes of a quick resolution to the conflict.
Market participants remain closely focused on geopolitical developments as supply risks continue to influence pricing trends.
What you should know
The surge in global oil prices has drawn reactions from stakeholders in Nigeria, where rising fuel costs are already impacting consumers and businesses.
Earlier, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged the Federal Government to channel gains from the current surge in global oil prices into investments in Nigeria’s gas infrastructure.
The association said such investments would help strengthen domestic energy capacity and improve long-term supply stability.
- PETROAN called for strategic reinvestment of oil windfalls into gas infrastructure development.
- The Nigeria Labour Congress (NLC) has urged the government to intervene following the rise in petrol prices to between N1,230 and N1,300 per litre nationwide.
- The labour union expressed concern over the impact of higher fuel prices on households and businesses.
