Brent crude futures rose $1.88, or 2.44%, to $78.89 a barrel as of 11:22 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.87, or 2.53%, to $75.71.
Earlier in the session, both benchmarks jumped over 3%, with Brent touching $81.40 and WTI reaching $78.40—both five-month highs—before paring some gains.
The sharp rise came after U.S. President Donald Trump announced that the U.S. had “obliterated” Iran’s main nuclear sites over the weekend in coordination with Israeli forces. The escalation has raised fears of further instability in the Middle East, with Iran vowing to retaliate.
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Iran, a key OPEC member, is the bloc’s third-largest crude producer. The latest developments have sparked concerns that Tehran could move to block the Strait of Hormuz—a critical waterway that handles nearly 20% of global crude shipments.Iran’s Press TV reported that its parliament has approved a measure to close the strait. While Iran has made similar threats in the past, it has never followed through.Also Read: US strikes on Iran may rattle markets: Will Nifty, Sensex react to escalating geopolitical risk?
Since the conflict began on June 13, Brent has surged 13%, while WTI is up around 10%.
Analysts, however, cautioned that the current geopolitical risk premium may not sustain unless there is a tangible disruption in global oil supply.
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