Oil prices surged on Monday as Israeli Prime Minister Benjamin Netanyahu warned that tensions with Iran remain unresolved, heightening concerns over potential disruptions to energy supplies. U.S. West Texas Intermediate futures for June delivery rose 3.08% to $95.42 per barrel, while Brent crude for July delivery increased 3.16% to $104.49 per barrel. Netanyahu emphasized ongoing issues, including Iran’s nuclear material and missile production, suggesting that the conflict could escalate further.

This spike in oil prices reflects broader market anxieties about geopolitical stability in the Middle East, which is crucial for global energy supplies. Analysts at Citi noted that while high inventories and strategic petroleum reserve releases have cushioned the market, the risks are skewed towards rising prices if diplomatic efforts between the U.S. and Iran falter. The potential for prolonged disruptions in the Strait of Hormuz, a vital energy route, adds to the uncertainty.

Market professionals should prepare for continued volatility in oil prices, particularly if negotiations between Iran and the U.S. do not yield a timely resolution.

Source: cnbc.com