Global oil prices surged past $108 per barrel on Monday, driven by escalating tensions between the United States and Iran.
The sharp increase follows growing concerns that Iran may be forced to cut crude production as its storage capacity nears its limit.
The standoff has been further aggravated by the blockade of the Strait of Hormuz, a critical shipping route for global oil supplies.
Traders reacted to the possibility of a significant supply disruption from one of the world’s major oil producers.
Iran’s inability to store additional crude could lead to an involuntary reduction in output, tightening global markets.
The cancellation of U.S.-Iran peace talks earlier this month has removed hopes for a quick diplomatic resolution.
Analysts warn that if the situation persists, oil prices could climb even higher in the coming weeks.
Market participants are closely monitoring any developments that might ease or intensify the current geopolitical risks.
