Oil Prices Surpass $97 as US-Iran Tensions Re-ignite

Global oil benchmarks surged on Monday, with Brent crude topping $97 per barrel and West Texas Intermediate (WTI) reaching $92, as renewed friction between the United States and Iran stoked supply concerns. The spike follows fresh diplomatic and military signals from both nations, reviving fears of potential disruptions in the Strait of Hormuz—a critical passage for roughly one-fifth of global oil consumption. Brent, the international standard, climbed more than 3% in early trading, while WTI, the US benchmark, posted similar gains. Analysts say the market is pricing in a higher risk of supply cuts, even though no physical barrels have been lost yet. Traders are now watching for any concrete action, such as new sanctions or naval deployments, that could escalate the standoff further. For now, the price jump adds pressure on global inflation, as higher energy costs typically translate into more expensive fuel, shipping, and consumer goods.