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Oil prices moved higher in volatile trading on Monday as markets remained on edge over potential supply disruptions stemming from the ongoing U.S.–Israel conflict with Iran.
By 23:36 ET (03:36 GMT), Brent crude futures rose 1% to $104.13 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.6% to $97.42 per barrel.
Prices had earlier surged as much as 3% before trimming gains and briefly trading near flat, highlighting the continued volatility in energy markets.
Trump calls for international help in Strait of Hormuz
Oil prices initially pulled back after U.S. President Donald Trump urged other countries to assist in restoring shipping through the Strait of Hormuz, a vital waterway that handles roughly 20% of the world’s oil supply.
Trump said the United States had begun discussions with seven countries, including China, about cooperating to secure the shipping route.
He described the effort to reopen the strait as a “very small endeavor,” arguing that Iran’s military capacity had been significantly weakened following recent U.S. and Israeli strikes.
In an interview with the Financial Times, Trump also warned that NATO allies could face consequences if they refused to support operations in the region.
However, reports indicated that Japan and Australia have declined to send warships to the area, underscoring the difficulty of building a multinational effort to secure the strategic passage.
Iran has maintained that the strait will remain closed until U.S. and Israeli attacks stop, after Tehran effectively blocked the route earlier this month in retaliation for military strikes.
Escalation after attack on Iranian oil hub
Tensions escalated further over the weekend after U.S. and Israeli forces struck Kharg Island, the hub responsible for about 90% of Iran’s oil exports.
President Trump said the strikes targeted military facilities on the island but warned that Iran’s oil infrastructure could be hit next if hostilities continue.
Iran responded by launching missile and drone attacks across the Persian Gulf, targeting population centers and American military installations.
Tehran has also continued attacks on ships near the Strait of Hormuz, reinforcing the blockade of the crucial shipping lane.
Supply fears continue to support oil
Despite repeated claims from U.S. officials that the conflict could end quickly, Iran has insisted it remains prepared to continue fighting.
Oil prices have risen sharply since the start of the conflict earlier in March, as traders price in the risk of prolonged supply disruptions—particularly if the Strait of Hormuz remains closed.
Adding to the market’s focus on supply risks, the International Energy Agency (IEA) announced over the weekend that it will release 411.9 million barrels from emergency reserves to help offset potential shortages caused by the conflict.
Even with these measures, energy markets remain highly sensitive to developments in the Middle East, with oil prices expected to stay volatile as traders assess the duration and scale of supply disruptions.
