Global oil prices climbed further on Monday as the ongoing conflict involving the United States, Israel, and Iran entered its third week, intensifying fears of supply disruptions and pushing energy markets into a prolonged rally.
The escalation has heightened concerns about the safety of oil infrastructure in the Middle East and increased tensions around the Strait of Hormuz, one of the world’s most critical shipping routes for crude oil.
Market data shows that Brent crude futures rose by $2.01, or 1.95 percent, to $105.15 per barrel as of 2338 GMT on Monday, after gaining $2.68 in the previous trading session. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed $1.61, or 1.63 percent, to $100.32 per barrel, extending last week’s rally. Both benchmarks have surged more than 40 percent this month, reaching their highest levels since 2022.
The price surge follows coordinated U.S.–Israeli attacks on Iran, which prompted Tehran to halt shipping through the Strait of Hormuz, a narrow maritime corridor that handles roughly one-fifth of global oil supply. With the strategic waterway effectively closed and regional infrastructure under threat, traders remain concerned about the possibility of prolonged disruptions to global energy flows.
The conflict has also drawn attention to Iran’s key export facilities, particularly the Kharg Island, which handles about 90 percent of the country’s crude oil exports. U.S. President Donald Trump has reportedly threatened further strikes on the facility following weekend military actions. Iran has vowed retaliation, raising the likelihood of an extended confrontation.
Separately, Iranian drones were reported to have struck a major oil terminal in Fujairah in the United Arab Emirates, shortly after the attacks on Kharg Island.
Oil loading activities at the Fujairah terminal have since resumed, although sources say it remains unclear whether operations have fully normalised. Located outside the Strait of Hormuz, Fujairah exports roughly one million barrels per day of the UAE’s flagship Murban crude, accounting for about 1 percent of global oil demand.
To ease pressure on global energy markets, the International Energy Agency (IEA) announced that more than 400 million barrels of oil from strategic reserves will be released into the market. The move represents a record draw aimed at stabilising prices amid growing geopolitical tensions.
Diplomatic efforts to de-escalate the conflict appear to have stalled. Reports indicate that the Trump administration has rejected proposals from Middle Eastern allies to begin negotiations, while Iran has ruled out a ceasefire until U.S. and Israeli military operations end.
The surge in oil prices has also triggered reactions in Nigeria, where rising global energy costs are already pushing up domestic fuel prices.
The Petroleum Products Retail Outlets Owners Association of Nigeria has urged the government to channel potential gains from higher oil prices into investments in gas infrastructure. Meanwhile, the Nigeria Labour Congress has called for government intervention as petrol prices reportedly climb to between N1,230 and N1,300 per litre nationwide.
