Oil prices surged dramatically on Monday as growing conflicts between the United States, Israel, and Iran shook investors and rekindled worries of supply interruptions throughout the Middle East.
U.S. crude increased 6.2 percent to trade above 71 dollars after briefly crossing the 82 dollar mark; Brent crude surged 6.4 percent to reach 77.57 dollars per barrel. Gold prices rose as demand for safe havens also reflected merchants’ responses to rising uncertainty.
Focus has been on the Strait of Hormuz, a key shipping lane handling around one-fifth of global seaborne oil deliveries. Although the river remains open, heightened security risks and insurance issues have slowed tanker traffic.
The News Chronicle gathered that the U.S. President Donald Trump’s remarks, indicating the war could linger for weeks, tempered hopes of a quick diplomatic settlement, thereby increasing volatility in the energy and equity markets.
While futures on the main U.S. indexes also indicated a downward trend, Asian and European stocks fell back. As investors looked for safety in American assets, the dollar rose. OPEC+, however, had already approved a small output rise, but experts contend that additional barrels might not at once make up for possible supply bottlenecks should regional conflicts escalate.
Markets are on tenterhooks as investors weigh geopolitical risks against weak global growth prospects, with key U.S. economic data expected this week.
