LONDON — Global oil prices surged on Monday as renewed missile exchanges between Iran and Israel raised fresh concerns over potential disruptions to Middle East energy supplies, market participants said.
Brent crude futures rose more than 4% in early trading, while West Texas Intermediate gained a similar amount, according to trading data. The increase followed Iran's announcement of a ceasefire in its limited missile exchanges with Israel, amid ongoing regional tensions that have periodically rattled energy markets this year.
The price spike reflected trader caution over possible renewed threats to shipping through the Strait of Hormuz, a critical chokepoint for about one-fifth of global oil trade, analysts said. Details on the immediate impact of the latest flare-up remained limited.
"Markets are reacting to the uncertainty from the latest developments," a senior energy trader at a major European bank told Reuters. "Any prolonged disruption in the region could add significant risk premiums."
The escalation came despite a fragile ceasefire brokered in April. Iranian state media reported missile launches toward Israel, prompting Israeli strikes on targets in Iran. Both sides later signaled de-escalation, but the episode revived worries about broader conflict affecting oil infrastructure.
Earlier in 2026, oil prices had fluctuated sharply amid the wider Iran-Israel tensions, with Brent crude at times climbing toward $90-$100 per barrel before easing. Monday's gains pushed benchmarks to their highest levels in recent weeks, traders said.
U.S. President Donald Trump called for an immediate ceasefire, according to public statements. Diplomats from multiple countries were engaged in efforts to stabilize the situation, officials said.
Energy analysts noted that while no major supply outages were immediately reported from the exchanges, the risk of escalation involving key producers continued to support prices. Saudi Arabia and other Gulf producers have maintained output levels, but shipping insurance costs and tanker routes have been sensitive to news from the region.
As of late Monday in London, Brent was trading around $94 per barrel, up sharply from Friday's close, while WTI approached similar levels, market data showed. Trading volumes were elevated amid volatility.
The full extent of any longer-term supply risks from the latest developments was still being assessed, with monitoring agencies and industry groups watching for further statements from involved parties.
