Global oil prices surged sharply as the Iran war increased concerns about disruptions to crude supplies. Brent crude rose 6.3% to settle at $107.63 per barrel, while US West Texas Intermediate (WTI) gained 6.7% to $102.48 per barrel.

The latest rise pushed both benchmarks above the $100 mark and to their highest closing levels since May 19. Reuters reported that oil prices were heading for their strongest weekly gain in several months as tensions continued to escalate.

Strait of Hormuz raises supply concerns

Investors are increasingly worried about the Strait of Hormuz, a key route for global energy shipments. Recent attacks on tankers and rising military tensions have increased fears that oil supplies could face further disruption.

The US Energy Information Administration has also reported that crude and petroleum shipments through the Strait of Hormuz fell sharply in 2026 compared with levels before the conflict.

Red Sea tensions add pressure

Concerns are not limited to the Gulf. Rising tensions around the Red Sea and Bab el-Mandeb have created additional risks for oil shipments and forced some vessels to consider longer routes.

Analysts say continued attacks and uncertainty over shipping routes could keep oil prices elevated. The latest surge has also increased concerns about inflation and higher fuel costs in several major economies.