Global crude oil prices rallied by more than 4 per cent on Monday after fresh military confrontations between the United States and Iran intensified concerns over energy supplies from the Middle East.
The renewed tensions pushed the international benchmark Brent crude close to the $80-per-barrel mark, while the US benchmark West Texas Intermediate (WTI) also recorded strong gains.
Brent crude increased by more than 4 per cent, rising $3.28 to trade near $80 per barrel. WTI climbed 4.55 per cent, gaining $3.25 to reach $74.66 per barrel, reflecting growing uncertainty in global energy markets.
The sharp rise followed reports from Iran claiming that the Strait of Hormuz had been closed until further notice.
However, the US Central Command (Centcom) rejected the claim, stating that it had carried out additional military operations to ensure freedom of navigation through the strategically important waterway, which handles a significant share of the world’s oil shipments.
Market sentiment weakened after US President Donald Trump indicated that the interim ceasefire with Iran was no longer valid, despite ongoing talks.
Centcom said US forces carried out a fourth round of precision strikes on Iranian targets in response to attacks on a Cyprus-flagged container vessel. US forces also intercepted an Iranian cruise missile and attack drone targeting commercial ships.
The escalating conflict has raised fears of disruptions to Middle East oil supplies, adding to global market volatility.
The uncertainty also weighed on financial markets, with the Sensex, Nifty and major Asian indices opening lower.
