West Texas Intermediate crude jumped to $91.15 per barrel on Monday, marking its highest level since late July, as renewed weekend military exchanges between the United States and Iran amplify supply disruption fears across the Middle East. The rally extends a months-long trend driven by ongoing regional conflict that threatens key oil transit routes and production infrastructure.
Energy traders are pricing in elevated geopolitical risk premiums as the latest attacks signal no near-term de-escalation in tensions. The surge impacts refiners, airlines, and transport-heavy sectors facing higher input costs, while oil majors and energy equities see potential upside momentum. Market participants are closely monitoring Strait of Hormuz shipping flows and potential retaliatory actions that could further tighten global supply.
FXnCO Insight
Traders should anticipate continued crude volatility with upside bias while monitoring Middle East developments closely, as further escalation could push WTI beyond $95 with immediate inflationary implications across energy-sensitive currencies and commodities.
Source: FXStreet