Oil prices surged on Monday as geopolitical tensions escalated in the Middle East, with Yemen’s Houthis launching missiles at Israel and U.S. President Donald Trump suggesting a strategy to seize Iranian oil. Brent crude futures jumped over 3.2% to $116.12 per barrel, while West Texas Intermediate rose 3.4% to $102.96. This spike comes amid ongoing conflict involving U.S. and Israeli forces and Iran, increasing fears over the stability of energy supplies in the region.
The surge in oil prices reflects growing concerns about prolonged disruptions to energy flows, particularly through critical chokepoints like the Strait of Hormuz. Analysts, including Ed Yardeni, warn that the market is adjusting to a scenario of “higher-for-longer” oil prices and interest rates, with potential recession risks looming as uncertainty around U.S. involvement in the conflict grows.
Market professionals should brace for heightened volatility as geopolitical risks continue to reshape energy markets, with the potential for significant supply disruptions that could impact global oil prices and broader economic conditions.
Source: cnbc.com