London, Jun 8: Global oil prices jumped sharply on Monday as renewed military exchanges between Iran and Israel heightened fears of a wider conflict in the Middle East, threatening regional stability and raising concerns over disruptions to global energy supplies.
International benchmark Brent crude futures for July delivery climbed 3.18 per cent to $96.05 per barrel, while US West Texas Intermediate (WTI) crude futures for August gained 3.46 per cent to $93.67 a barrel.
The surge came after Israel and Iran exchanged fresh attacks despite a fragile ceasefire, triggering uncertainty in global energy markets. The Israel Defense Forces (IDF) said the Israeli Air Force struck military targets in western and central Iran on Monday, signalling a fresh escalation in hostilities.
The White House confirmed that US President Donald Trump had been briefed after Israel was targeted by an Iranian missile attack, the first such incident since the ceasefire came into effect. Trump expressed concern over the developments, saying the missile launches were unlikely to support ongoing diplomatic efforts.
“The attacks are certainly not going to help negotiations,” Trump was quoted as saying.
Adding to concerns over the future of diplomacy, an Iranian official involved in talks between Tehran and Washington reportedly said that a deal with the United States was no longer feasible under the current circumstances.
Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf also accused the United States of violating ceasefire understandings through what he described as a naval blockade and actions related to Lebanon. He warned that US military bases and assets in the region could become “legitimate targets” amid the escalating tensions.
The latest developments have reignited fears of disruptions to oil flows from the Middle East, a region that accounts for a significant share of global crude production and exports. Investors remain particularly concerned about the security of shipping routes and energy infrastructure in the Gulf region.
Meanwhile, the OPEC+ alliance agreed to raise oil production targets by 188,000 barrels per day from July, according to an official statement. The increase marks the fourth consecutive output quota hike and follows previous adjustments aimed at stabilising global energy markets.
Despite the production increase, traders remained focused on geopolitical risks, which outweighed expectations of additional supply and pushed crude prices higher.
Market analysts said further escalation between Iran and Israel could increase volatility in energy markets and place additional pressure on economies already grappling with inflation and supply chain challenges.
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