- Oil prices surged above $106 per barrel amid Iran-US-Israel conflict escalation
- US WTI crude rose 17.23% to $106.56, Brent crude climbed 15.35% to $106.92
- Iran's attacks on US-Israel linked sites raise concerns over Middle East oil supply
Oil prices surged to near $120 per barrel on Monday, marking a historic single-day rally as the conflict involving Iran, the United States and Israel intensified and raised concerns about disruptions to global energy supplies.
Brent crude rose as much as 29.92% to $119.50 per barrel, while US benchmark crude climbed as much as 31.44% to $119.48, according to Bloomberg data. The surge represents one of the sharpest intraday moves ever recorded in global oil markets. The rally comes after crude had settled significantly lower last week. Brent closed Friday at $92.69 per barrel, while US crude ended the session at $90.90 before tensions escalated further across the region.
The rally comes as the conflict between Iran, the United States and Israel entered its tenth day after joint US-Israeli strikes targeted Iranian military and energy infrastructure, including fuel depots in Tehran.
Iran has responded with attacks on Israeli targets and United States-linked military assets across the Gulf region, including locations in Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The escalation has raised concerns about potential disruptions to oil production and exports from the region.
ALSO READ: US-Iran War: Iran Rejects Ceasefire Calls As War With US, Israel Escalates
Iran's parliamentary speaker Mohammad Bagher Ghalibaf warned that the war could directly affect the country's oil sector if the fighting continues.
“If the war continues like this, there'll be neither a way to sell oil nor the capacity to produce it,” Ghalibaf said.
Energy markets are also watching developments around the Strait of Hormuz, a key route for global crude shipments.
Iran has said the strait remains open but warned that vessels linked to the United States or Israel could be targeted if the conflict escalates further.
The surge in crude prices has drawn responses from Washington, where officials have sought to calm concerns about higher fuel costs.
US Energy Secretary Chris Wright said the current rally reflects a “fear premium in the marketplace” but suggested the increase may be temporary.
“We never know exactly the timeframe of this,” Wright said during an appearance on CNN's “State of the Union”. “But in the worst case, this is a weeks, this is not a months thing.”
White House press secretary Karoline Leavitt also described the increase in fuel prices as a short-term disruption.
“But ultimately taking out the rogue Iranian regime is going to be a good thing for the oil industry,” she said in an interview on Fox News.
US President Donald Trump also addressed the surge in crude prices, saying higher oil costs are a short-term consequence of the conflict.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump said in a post on Truth Social.
Energy traders are closely monitoring developments in the region, as further escalation could affect production facilities, export terminals and shipping routes that carry a significant share of the world's oil supply.
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