Oil Prices Jump Over $3 as Middle East Tensions Rise

On Monday Oil prices suddenly increased, claimed more than $3 per barrel as fresh tensions in the Middle East worried markets and raised concerns about global supply.

Brent crude climbed $3.20 (3.39%) to $96.24 per barrel, while US crude increased $2.87 (3.17%) to $93.41 per barrel as of 0333 GMT. The rise followed Israel’s latest strikes in Lebanon, and explosions were reportedly heard in cities across Iran, including Tehran, Tabriz, and Isfahan.

The markets turned cautious, with expectations weakening for an early easing of tensions or secure oil shipments through the Strait of Hormuz.

The rise wiped out Friday’s decline, as prices fell earlier on hopes of easing tensions between the US and Iran. The recent escalation quickly changed the direction. Prices have climbed over 50% since March due to continued conflict concerns.

Donald Trump, the US President, stated a peace promise is still possible and diminished the impact of recent violence on negotiations. He also reportedly advised Israeli Prime Minister Benjamin Netanyahu against conducting any more attacks. Speaking to reporters, Trump said he thinks the United States is in charge of the decision-making process in this situation.

According to reports, Iran has made clear that any ceasefire in Lebanon is part of wider talks with the US. In the meantime, since March, fighting has gone on after Israel entered Lebanon in response to Hezbollah’s attacks across the border.

Despite several peace efforts and ceasefire claims, violence and tensions are still ongoing. As per analyst reports, the fight and impassable supply ways continue to evaluate severely on global oil prices.