Oil prices surge after further escalation of conflict in the Middle East

Oil prices are surging at the start of the week. The move is a reaction to renewed Israeli attacks on Lebanon and Israeli strikes on military targets in Iran.

At around 7:45 CEST, North Sea Brent crude was up approximately 4.3 percent, trading at around 97,20 dollars per barrel. US light crude West Texas Intermediate (WTI) gained roughly 4.2 percent and was above 94,30 dollars per barrel.

Today’s gains erased Friday’s losses in the oil market. Prices fell on Friday amid hopes of easing tensions in the conflict between the United States and Iran. As a result, oil prices have risen by more than 50 percent since March.

Sounds of explosions were heard in Tehran, Tabriz and Isfahan, local media report. The further escalation of the conflict in the Middle East has dashed hopes for an early end to the wider war and the resumption of oil flows through the Strait of Hormuz. Iran’s near-total blockade of this waterway is considered the biggest disruption to supplies in the history of the global oil market.

Oil prices in dollars per barrel (about 159 liters)