Global crude oil prices surged more than 4 per cent to trade near the $80-per-barrel mark on Monday after fresh military strikes between the US and Iran reignited concerns over supply disruptions in the Middle East.
International benchmark Brent crude rose more than 4 per cent or $3.28 to nearly $80 per barrel.
Similarly, US benchmark West Texas Intermediate (WTI) gained 4.55 per cent or $3.25 to $74.66 per barrel.
The latest rally came after Iran reportedly claimed that the Strait of Hormuz had been closed until further notice, a statement rejected by the US Central Command (Centcom), which said it had carried out further strikes to ensure freedom of navigation through the strategic waterway.
According to market experts, sentiment weakened further after US President Donald Trump indicated that the interim ceasefire agreement and Memorandum of Understanding with Iran were effectively no longer valid, although diplomatic negotiations between the two nations continue.
On Sunday, US forces used precision munitions to strike dozens of targets across multiple locations in Iran, according to the US Central Command.
The operation marked the fourth round of US military action against Iran in a week. Centcom said the strikes were launched in response to Iranian attacks on a Cyprus-flagged container vessel.
Reports also suggested that Iran’s Islamic Revolutionary Guard Corps again targeted commercial ships, prompting US forces to intercept an Iranian cruise missile and an attack drone.
The latest escalation has raised fears of a prolonged conflict that could disrupt energy supplies from one of the world’s most critical oil-producing regions.
Meanwhile, domestic equity markets traded lower, with the Sensex and Nifty opening in the red on Monday.
Asian markets also traded negatively with major indices Nikkei, Hang Seng and South Korea’s KOSPI plunged up to 6 per cent.
