Oil surged 9% on Monday after retaliatory Iranian attacks disrupted shipping in the crucial Strait of Hormuz in reaction to the weekend’s bombing by “Israel” and the United States that killed Iranian Supreme Leader Ali Khamenei, the Reuters news agency reported.
A sustained jump in prices would threaten a global economic recovery, spur inflation and could push up U.S. retail gasoline prices, a risky result for President Donald Trump ahead of midterm elections this November.
Brent crude futures LCOc1 rose as much as 13% to $82.37 a barrel, their highest since January 2025, before retreating to trade up $6.00, or 8.2%, at $78.87 a barrel by 0919 GMT.
U.S. West Texas Intermediate crude CLc1 climbed to an intraday high of $75.33, up more than 12% and its highest since June, though it later pared gains and was up $5.15, or 7.7%, at $72.17.
On Sunday, some analysts had predicted oil would open on Monday at over $90 a barrel and closer to $100.
Prices jumped as an exchange of counterattacks damaged tankers and disrupted shipments in the Strait of Hormuz between Iran and Oman that connects the Gulf to the Arabian Sea.
More than 200 vessels including oil and liquefied gas tankers have dropped anchor outside the Strait, shipping data showed on Sunday. Three tankers were damaged and one seafarer was killed in attacks in Gulf waters.
