Oil prices climbed sharply on Monday after Yemen’s Houthis launched attacks on Israel over the weekend. These strikes expanded the ongoing U.S.-Israel conflict with Iran, alarming global markets. Brent crude futures rose $2.43, or 2.16%, to reach $115 a barrel by 0342 GMT. On Friday, Brent had already jumped 4.2%, signaling a strong upward trend.
Meanwhile, U.S. West Texas Intermediate hit $101.50 a barrel, increasing $1.86, or 1.87%, following a 5.5% gain the previous day. Investors reacted quickly to rising tensions across key oil routes. Vandana Hari, founder of Vanda Insights, explained that traders expect no immediate negotiated end to the war. She emphasized that market participants brace for further escalation in hostilities.
U.S. President Donald Trump confirmed ongoing “direct and indirect” talks with Iran. He called Iran’s new leadership “very reasonable” while more U.S. troops were deployed to the region. Simultaneously, the Israeli military reported attacks on Iranian infrastructure across Tehran.
Brent crude has soared 59% this month, marking its steepest monthly increase since the 1990 Gulf War. Analysts note the Iran conflict has effectively closed the Strait of Hormuz, a vital channel for one-fifth of global oil and gas supplies. The conflict is no longer confined to the Persian Gulf. The Houthis’ strike on Israel extended the risk to the Red Sea and the Bab el-Mandeb, a key chokepoint for crude and refined product flows, according to JP Morgan analysts led by Natasha Kaneva.
Saudi Arabia redirected crude exports from the Strait of Hormuz to Yanbu port on the Red Sea, reaching 4.658 million barrels per day last week, Kpler data showed. Analysts warned that disruption at Yanbu could force Saudi oil to pivot through Egypt’s Suez-Mediterranean (SUMED) pipeline.
Over the weekend, attacks intensified and damaged Oman’s Salalah terminal, despite ceasefire talks. Iran stated it is ready to respond to a potential U.S. ground assault while still pursuing negotiations. Pakistan’s Foreign Minister Ishaq Dar said Islamabad discussed options for an early and permanent resolution, including possible U.S.-Iran talks.
As the conflict spreads, global oil markets remain volatile. Oil surges as Houthi attacks widen Middle East conflict, forcing investors to weigh supply risks and geopolitical uncertainty. Analysts expect prices to stay high until the region stabilizes. Oil surges as Houthi attacks widen Middle East conflict, reflecting fears over shipping lanes and energy security.
