Global oil prices surged 7% Monday, topping $97 a barrel, following reports that Iran suspended talks with the United States and fully closed the Strait of Hormuz.
The move came in response to Israeli military operations in Lebanon, escalating tensions across the region.
Benchmark U.S. crude jumped to its highest level in months, while international Brent crude followed a similar trajectory.
The Strait of Hormuz is a critical chokepoint for global oil shipments, with about one-fifth of the world’s petroleum passing through it daily.
Analysts warned the closure could disrupt supply chains and push prices higher in the coming weeks.
Diplomatic efforts to de-escalate the situation remain stalled, as both sides trade accusations over the recent hostilities.
Traders and policymakers are now closely monitoring developments, with the potential for further price volatility ahead.
