Global oil prices climbed above $100 per barrel on Monday as the ongoing conflict involving Iran intensified, raising fears about disruptions to energy supply through the vital Strait of Hormuz.
Crude prices surged shortly after Donald Trump announced that U.S. forces had struck military targets on Kharg Island, a key hub that handles most of Iran’s oil exports. Trump also warned that attacks could extend to energy infrastructure if Iran interferes with shipping through the strait.
Despite the strikes, Iran’s state-affiliated Fars News Agency reported that no oil infrastructure was damaged. However, tensions remain high as the waterway—through which a significant portion of the world’s oil supply passes—has been effectively closed since the conflict escalated in late February.
Meanwhile, Abbas Araghchi stated that Iran was not interested in negotiations with the United States, though he indicated that Tehran was open to discussions with other countries seeking safe passage for their vessels.
The conflict has also led to heightened security concerns across the region. Saudi Arabia reported intercepting more than 60 drones overnight, while flights were temporarily suspended at the airport in Dubai following a drone-related incident that triggered a fire nearby.
Amid the uncertainty, benchmark crude prices rose sharply. Brent crude briefly climbed above $106 per barrel before settling around $104, while West Texas Intermediate traded just below $100 per barrel.
In response to the surge in prices, the International Energy Agency announced plans for member countries to release about 400 million barrels of oil from strategic reserves to help stabilise the global energy market.
Analysts warn that the longer the Strait of Hormuz remains disrupted, the tighter global oil supplies could become, potentially driving up energy prices and inflation worldwide.
