Oil prices surged by more than 3% at the start of the week, as military escalation between the United States and Iran raised concerns about the security of energy supplies through the Strait of Hormuz, one of the most important oil passageways in the world.
Brent crude for September rose by 3.75% to $78.86 a barrel, while U.S. West Texas Intermediate crude for August increased by 3.65% to $74.02 a barrel.
The gains came hours after the U.S. Central Command announced a new round of strikes against targets within Iran, which it said were aimed at undermining Tehran's ability to attack commercial ships in the Strait of Hormuz.
In contrast, Iran announced that the U.S. strikes had derailed diplomatic efforts and accused Washington of violating the memorandum of understanding between the two sides, while Iranian state television reported hearing explosions in Bandar Abbas, Sirik, Qeshm Island, and the city of Jask.
The U.S. military also announced that Iranian Revolutionary Guard forces had fired on commercial ships in the Strait of Hormuz, confirming the interception of an Iranian cruise missile and a drone during the attack, while Washington emphasized its continued operations to protect international navigation.
The escalation of military confrontation and fears of disrupted navigation through the Strait of Hormuz have increased pressure on energy markets, with investors awaiting the potential widening of the conflict and its impact on global oil supplies.