Global Economy
WTI Crude Surges Over 7% Amid Middle East Conflict, Hits Eight‑Month High
U.S. West Texas Intermediate (WTI) crude rocketed more than 7 % on Monday, closing at $72 per barrel – its highest level in eight months – after a joint U.S.–Israeli strike on Iran sparked a wave of military escalation in the Middle East. Brent followed with an 8 % gain, while OPEC+ announced a modest production increase that falls short of earlier expectations, leaving markets on high alert for further geopolitical shocks. Investors are now watching the Strait of Hormuz, Iranian missile retaliation, and any new policy moves that could reshape the global oil supply‑demand balance.
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WTI Crude Rockets Over 7% to Eight‑Month High
On Monday, U.S. West Texas Intermediate (WTI) crude jumped more than 7 % to $72 per barrel, the highest level since July 2025. The surge was triggered by escalating military actions following a joint U.S.–Israeli strike on Iran.
Brent Follows Suit
International Brent crude also rose sharply, gaining about 8 % to settle near $78.7 per barrel after an intraday peak of nearly 13 %, its strongest performance since January 2025.
Geopolitical Flashpoint: Strait of Hormuz
The strategic Strait of Hormuz, through which roughly 20 % of global oil exports flow, remains a focal point. Tehran publicly insists the waterway is open, yet several shipping lines have already rerouted vessels, stoking fears of logistical disruptions.
Iran’s Retaliatory Missile Launches
In response to the strikes, Iran fired missile salvos at U.S. bases across the region, including sites in the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.
OPEC+ Adjusts Output
OPEC+ announced on Sunday a modest production increase of 206,000 barrels per day starting in April, ending a three‑month pause. The boost falls short of the 411,000–548,000 bpd originally contemplated, limiting its ability to offset the heightened geopolitical risk.
Market Outlook
Traders are closely monitoring any further military developments or policy decisions that could shift the delicate balance of the global oil market.