Global oil prices rose sharply on Monday, coming close to $120 per barrel, as growing tensions involving Iran raised fears about energy supplies from the Middle East. The situation has created uncertainty in international markets and caused concern among traders and investors.
The price of Brent Crude, which is one of the main global oil benchmarks, increased to around $119.50 per barrel.
At the same time, West Texas Intermediate (WTI), another important oil benchmark used mainly in the United States, briefly reached about $119.48 per barrel. This jump in prices is considered one of the largest single-day increases since 2022.
Experts say the rise is mainly due to fears that the ongoing conflict in the region could interrupt the supply of oil. One major concern is the Strait of Hormuz, a narrow waterway that is extremely important for global energy trade.
Nearly 20 percent of the world’s oil supply passes through this route. If shipments through the strait are disrupted, it could significantly reduce global oil supply and push prices even higher.
Adding to these concerns are reports that major oil-producing countries such as Iraq, Kuwait, and the United Arab Emirates may reduce their oil production. Any reduction in supply from these producers could tighten the global market further.
Because of these developments, energy markets reacted quickly, with oil prices rising sharply. Analysts say the situation will depend largely on how the conflict develops and whether oil supplies from the Middle East remain stable in the coming weeks.
