WTI crude futures jumped more than 8% on Monday to trade above $72 a barrel, their highest level since June of last year, as escalating tensions in the Middle East fueled fears of supply disruptions through the Strait of Hormuz, a vital corridor that handles about one-fifth of global seaborne oil shipments. In response to the rising risks, several shipping companies have begun rerouting tankers away from the narrow passage.
The price surge followed a series of US and Israeli strikes on Iran, which triggered retaliatory attacks by Tehran on targets across the region. In the wake of these developments, Saudi Aramco temporarily suspended operations at its Ras Tanura refinery—its largest facility—to assess damage after a drone attack on the site.
At the same time, OPEC+ agreed on Sunday to increase production by 206,000 barrels per day starting in April, ending a three-month output freeze. The hike, however, was notably smaller than the previously discussed range of 411,000 to 548,000 barrels per day, leaving markets uneasy amid heightened geopolitical uncertainty.
