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International oil markets rallied sharply on Monday as the conflict in West Asia escalated following US military strikes on Kharg Island. The development heightened fears of disruptions to crucial global energy supplies.
At around 9:45 AM, crude futures climbed significantly. The US benchmark West Texas Intermediate surged by 3.77 per cent to $102.44 per barrel.
The global benchmark Brent Crude traded at $104.79, marking a 1.59 per cent increase from the previous session.
Market volatility intensified after Iran launched retaliatory strikes against Israel and several Arab states.
The retaliation followed US attacks targeting military installations on Kharg Island, which processes the majority of Iran’s crude exports.
US President Donald Trump warned that Iran’s energy infrastructure on the island could face additional strikes if Tehran attempts to obstruct shipping in the Strait of Hormuz.
The narrow waterway connects the oil-rich Persian Gulf to international markets.
Trump also urged major oil-importing nations to help safeguard maritime traffic through the corridor.
Reports indicate that Washington requested countries such as China and Japan to deploy naval vessels to ensure tanker security.
Nearly one-fifth of global crude shipments and large volumes of liquefied natural gas pass through the Strait of Hormuz.
To strengthen security, the US has instructed the Navy’s United States Fifth Fleet to escort commercial vessels in the region.
According to the International Energy Agency, the conflict has already caused the largest supply disruption in the history of the global oil market.
Shipping activity through the strait has slowed considerably as hostilities intensified.
Meanwhile, the United Arab Emirates resumed loading operations at Port of Fujairah after a drone strike briefly halted exports.
Brent crude had surged nearly 11 per cent last week, touching $119.50 per barrel before settling slightly above $103.
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