Oil Prices Surge Amid Escalating Middle East Tensions

Brent crude futures surged by more than $3 per barrel, while US crude also recorded significant gains after reports of fresh military developments in the region. Market sentiment was initially shaken by renewed Israeli strikes in Lebanon, with further support for prices emerging after reports of explosions in several Iranian cities, including Tehran, Tabriz and Isfahan.

Brent crude rose to $96.24 per barrel, up 3.39 percent, while US West Texas Intermediate (WTI) crude advanced to $93.41 per barrel, reflecting a gain of 3.17 percent during early trading.

Israel Lebanon Ceasefire Broken as Oil Prices Jump $2 a Barrel

The latest increase erased losses recorded at the end of last week, when expectations of a potential diplomatic breakthrough between Washington and Tehran had temporarily eased concerns about supply disruptions.

Energy markets remain highly sensitive to developments surrounding the Strait of Hormuz, one of the world’s most critical oil transit routes through which a significant share of global crude exports passes. Ongoing uncertainty regarding regional security has raised fears that disruptions could continue to impact global supply chains.

Despite the rising tensions, US President Donald Trump expressed confidence that a broader agreement aimed at ending the conflict remains achievable. Reports indicated that he also urged Israeli Prime Minister Benjamin Netanyahu to avoid actions that could further escalate the situation.

Iran has continued to link progress toward a wider peace arrangement with developments in Lebanon, where tensions between Israel and the Iran-backed Hezbollah movement remain a major source of instability.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to another increase in oil production during a meeting on Sunday. However, market analysts suggested the move may provide limited relief, as several member states continue to face production and export challenges linked to regional instability and infrastructure constraints.

Oil prices have remained volatile in recent months, with geopolitical developments continuing to play a decisive role in shaping market expectations and investor sentiment.