New York: Oil and gas prices surged on Monday as Israeli and U.S. strikes on Iran and retaliation by Tehran forced shutdowns of oil and gas facilities across the Middle East and disrupted shipping in the crucial Strait of Hormuz. A sustained rise in oil prices would endanger a global economic recovery andfuel inflation and could push up U.S. retail gasoline prices, a risk for U.S. President Donald Trump and his Republican Party ahead of midterm elections this November.
Brent crude futures rose as much as 13% to $82.37 a barrel, their highest since January 2025, before retreating to trade up $4.92, or 6.75%, at $77.79 a barrel at 11:06 a.m. ET (1606 GMT). U.S. West Texas Intermediate crude was up $3.87, or 5.77%, at $70.89, having risen more than 12% to $75.33, its highest since June.
OIL AND GAS OUTPUT RESTRICTED OVER IRAN WAR
“While we do not know where these disruptions will end or how the conflict will ultimately resolve, the near-term result is likely to be heightened volatility in global energy markets and a potential rerouting of global oil and gas cargoes,” said Kenny Zhu, research analyst at Global X.
