Brent crude futures surged to $82.30 per barrel on Monday, climbing 2.2% at the open, while West Texas Intermediate (WTI) rose above the $78 mark.
The sharp rally in energy prices was triggered by renewed geopolitical tensions in the Middle East, specifically following statements from US President Donald Trump.
President Trump warned that the United States could take military action against Iran if Hezbollah continues its attacks on Israel.
President Trump warned that the United States could take military action against Iran if Hezbollah continues its attacks on Israel.
This escalation casts significant doubt on the durability of a fragile interim peace agreement reached just last week between the US and Iran.
Market participants are now pricing in a higher risk premium for potential supply disruptions in the region.
The threat of renewed conflict comes at a critical juncture for global energy markets.