New Delhi: Oil prices spiked on Monday to levels not seen since January, following the United States’ decision to join Israel in attacking Iran’s nuclear sites, raising fears of a wider conflict that could disrupt global energy supplies.
As of 0806 GMT, Brent crude rose by 72 cents (0.93%) to \$77.73 per barrel, while U.S. West Texas Intermediate (WTI) gained 71 cents (0.96%) to reach \$74.55. Both benchmarks had earlier soared over 3% to \$81.40 and \$78.40, respectively, before easing slightly.
The price surge came after U.S. President Donald Trump claimed that Washington had “obliterated” key Iranian nuclear facilities over the weekend. Iran, a major OPEC oil producer, responded by vowing to defend itself and accused Trump of recklessly escalating the conflict by siding with Israel.
Analysts warned that any Iranian retaliation—particularly a potential move to block the Strait of Hormuz—could significantly disrupt oil shipments. Around 20% of the world’s crude supply passes through the narrow waterway, which is vital for global energy trade.
“The rising geopolitical tension is a strong bullish driver for Brent, with prices possibly heading toward \$100 and even \$120 per barrel if the situation worsens,” said Sugandha Sachdeva, founder of research firm SS WealthStreet in New Delhi.
Iran’s military warned that the U.S. strikes had broadened its list of legitimate targets. Tehran also referred to Trump as a “gambler” for his role in escalating the hostilities.
Energy analyst June Goh of Sparta Commodities said threats to regional oil infrastructure had increased, and even though alternative pipeline routes exist, they wouldn’t be sufficient if Hormuz were closed. Many oil tankers would likely avoid the area altogether in such a scenario.
Goldman Sachs, in a report on Sunday, said Brent prices could briefly hit \$110 if traffic through the strait were halved for a month, and that global supplies would remain affected for nearly a year. However, the bank maintained its base assumption of no major long-term disruption, citing international efforts to prevent a severe supply shock.
Since the start of the Iran-Israel conflict on June 13, Brent has risen 13% and WTI about 10%.
While closing Hormuz would also severely damage Iran’s own oil-dependent economy, making it a risky move, tensions remain high. Japan has called for calm, and a South Korean official expressed concern about the potential impact on trade.
In a sign of diplomatic activity, Russia announced that President Vladimir Putin would meet Iranian Foreign Minister Abbas Araqchi in Moscow later on Monday.
