Oil Surges Over $3 as Middle East Tensions Escalate

Oil prices surged sharply on Monday, driven by intensifying regional tensions in the Middle East. Brent crude for November delivery climbed 2.8% to $107.54 per barrel, while U.S. West Texas Intermediate (WTI) for October delivery rose 2.3% to $102.34 per barrel.

This latest gain extends a rally that began last week, when prices rebounded above the $100-per-barrel threshold. Market attention remains heavily focused on the Middle East, where fresh security concerns are threatening key export routes.

Strait of Hormuz Navigation Restrictions

Prior to the outbreak of hostilities, the Strait of Hormuz remained open to maritime traffic without restriction. Iran now requires all vessels transiting the strait to obtain prior passage authorization. Tehran is also evaluating a mechanism to impose service fees on commercial shipping.

Vessels failing to comply with these requirements face Iranian attacks. In parallel, the United States has conducted regular coastal bombardments against Iranian territory.