FX.co ★ Brent Jumps as Iran and Israel Exchange Missile Strikes

Brent crude futures surged more than 4% to climb back above $97 per barrel on Monday, rebounding after a two-session slide, as Iran and Israel exchanged missile strikes. The escalation raised concerns that it could undermine President Trump’s efforts to secure a new 60-day ceasefire with Tehran. The proposed truce is intended as a stepping stone toward broader negotiations aimed at achieving a permanent end to the conflict. Trump also urged both sides to refrain from further military action and emphasized that diplomatic talks are continuing despite the renewed hostilities. At the same time, the protracted conflict and the ongoing near-closure of the Strait of Hormuz have disrupted energy flows from the Persian Gulf, lending continued support to oil prices. Separately, OPEC+ approved another increase in July oil production quotas of 188,000 barrels per day, even as supply risks persist amid tensions in the Middle East.