Oil prices surged on Monday, driven by escalating tensions between the U.S. and Iran, as President Donald Trump issued a stark warning to Tehran amid stalled peace negotiations. International benchmark Brent crude futures climbed 1.98% to $111.42 a barrel, while U.S. West Texas Intermediate futures rose 2.43% to $107.98, marking their highest levels this month. The ongoing deadlock over the Strait of Hormuz, a critical chokepoint for global oil supply, raises the specter of renewed conflict, further tightening supply.
The International Energy Agency (IEA) highlighted that global oil inventories are depleting at an unprecedented rate, with projections suggesting they could hit near-record lows of 7.6 billion barrels by the end of May if current demand persists. This depletion, coupled with geopolitical risks, could lead to significant price volatility in the coming weeks.
Market professionals should closely monitor developments in U.S.-Iran relations and inventory levels, as these factors are poised to influence oil prices and broader market sentiment significantly.
Source: cnbc.com