Oil prices surged over 3% as Iran and Israel traded strikes, escalating regional tensions and raising concerns over a fragile ceasefire. Brent crude futures rose to $96.05 per barrel, while WTI futures reached $93.67.
The conflict’s impact on potential negotiations was highlighted, with President Trump being briefed and an Iranian official suggesting a deal is no longer feasible. Meanwhile, OPEC+ agreed to a production increase of 188,000 bpd from July.
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Global oil prices experienced a significant jump of over 3% on Monday, driven by escalating tensions in the Middle East as Iran and Israel engaged in direct strikes. This renewed conflict has fueled concerns about regional stability and potential disruptions to oil supply routes.
International benchmark Brent crude futures for July delivery climbed 3.18% to settle at $96.05 per barrel. Simultaneously, U.S. West Texas Intermediate (WTI) futures for August gained 3.46%, reaching $93.67 a barrel. These price surges reflect the market's reaction to the heightened geopolitical risks.
The Israeli Air Force reported striking military targets in western and central Iran on Monday local time, according to a statement from the Israel Defense Forces on X. This marks a significant escalation in the ongoing conflict.
U.S. President Donald Trump was briefed on the developments. The White House confirmed to MS NOW that the President had been informed of the fresh fighting, particularly after Israel was targeted by an Iranian missile for the first time since the ceasefire began. Trump commented to Fox News on Sunday that these missile attacks are "certainly not going to help negotiations."
An Iranian official involved in talks between Tehran and Washington indicated to MS NOW that "A deal with President Trump is no longer feasible at this stage."
Adding to the complex geopolitical landscape, Iran's Parliamentary Speaker, MB Ghalibaf, posted on X, stating that a U.S. "naval blockade and violation of agreements regarding Lebanon" would constitute violations of the ceasefire. He further declared that the region's U.S. and regime bases and assets are now "legitimate targets" due to the current U.S. blockade and military actions in Lebanon.
In separate news impacting the energy market, OPEC+ has agreed to increase production targets by 188,000 barrels per day starting in July, according to an OPEC statement. This marks the fourth oil output quota hike since the closure of the Strait of Hormuz and is consistent with June's increase, which was adjusted from higher monthly hikes in May and April following the UAE's exit from the organization.
—CNBC's Garrett Downs contributed to the report.
