LONDON — Oil prices rose sharply Monday as the month-long conflict involving the United States, Israel and Iran entered a critical phase, with disruptions to shipping in the Strait of Hormuz tightening global crude supplies.
Brent crude, the international benchmark, climbed to $115.31 per barrel, up more than 2 percent from the previous session, according to trading data. The price has surged nearly 50 percent over the past month and stands more than 50 percent higher than levels before the conflict began on Feb. 28. West Texas Intermediate crude followed a similar trajectory, trading near $100 per barrel in recent sessions.
The increase stems from reduced oil flows through the Strait of Hormuz, a narrow waterway between Iran and Oman that normally carries about one-fifth of global oil and liquefied natural gas shipments. Iranian actions in response to U.S. and Israeli airstrikes have sharply curtailed tanker traffic, with only a limited number of vessels passing under special arrangements. Pakistan facilitated the transit of two Pakistani-flagged tankers daily, but overall volume remains far below pre-conflict levels.
Kharg Island, Iran's primary oil export terminal in the Persian Gulf, has been the focus of military attention. U.S. strikes earlier in March targeted naval and missile facilities on the island while leaving main oil infrastructure intact. The terminal handles the majority of Iran's crude exports and has storage capacity of roughly 30 million barrels. Disruptions in the region have contributed to a broader decline in Middle East oil exports.
The conflict has spread to multiple fronts, including Israeli ground operations in southern Lebanon against Hezbollah and Houthi missile launches from Yemen toward Israel. These developments have heightened concerns over further supply risks in the Red Sea and Persian Gulf. Energy markets have reacted with volatility, as traders monitor potential damage to production or export facilities.
Major consuming regions in Asia and Europe face the greatest exposure to higher energy costs. The Organization for Economic Cooperation and Development has warned that sustained high oil prices could push inflation higher in importing economies. Shipping companies have rerouted vessels or suspended operations in affected areas, adding to logistical pressures.
As of Monday, diplomatic talks hosted by Pakistan continued in Islamabad, with officials from several regional countries seeking a ceasefire and resumption of safe passage through the Strait of Hormuz. No agreement has been reached. U.S. military forces, including thousands of additional Marines, maintain a presence in the Middle East, while oil markets remain sensitive to any escalation or breakthrough in negotiations.
