Global oil prices surged over 4% on Monday as tensions between the United States and Iran escalated, with both nations launching military strikes that threatened the strategic Strait of Hormuz.Brent crude futures rose $3.10 to $79.11, while US West Texas Intermediate crude climbed $2.95 to $74.36 per barrel.

The conflict intensified after US forces targeted Iranian assets in multiple locations, and Iran retaliated by attacking US military bases in Kuwait and Bahrain.The Strait of Hormuz, a critical chokepoint for 20% of the world’s oil transit, remains under dispute as both sides threaten further action.Analysts warn that the situation could undermine an interim agreement aimed at reopening the strait and ending hostilities.Despite recent gains in global oil supply, production levels remain below pre-war benchmarks, raising concerns about long-term market stability.

The crisis has also cast doubt on the viability of diplomatic efforts to resolve the conflict, with experts cautioning that the fragile ceasefire may not hold.