Oil prices jump over 3% as Iran-Israel tensions flare again
What's the story
Oil prices witnessed a significant spike on Monday, amid rising tensions in the Middle East. The latest developments have raised concerns over a fragile ceasefire and the possibility of an extended conflict. International benchmark Brent crude futures for July surged 3.18% to $96.05 per barrel, while US West Texas Intermediate futures for August jumped 3.46% to $93.67 a barrel.
Military actions
Israeli Air Force targets military sites in Iran
The Israeli Air Force has targeted military sites in western and central Iran, according to a post by the Israel Defense Forces on X. The move comes after an Iranian missile struck Israel for the first time since the ceasefire began. US President Donald Trump was briefed about this development, with Trump confirming that "the missile attacks are certainly not going to help negotiations."
Escalation and response
Tehran continues to block most shipping through Strait of Hormuz
In retaliation to the strikes in Beirut, Iran fired missiles at Israel in support of its ally Hezbollah. The wider conflict has largely remained on hold since the US and Israel halted attacks on Iran in early April. However, Tehran continues to block most shipping through the Strait of Hormuz, adding to an ongoing supply crisis. Meanwhile, OPEC+ has approved its fourth oil output increase in four months.