Oil prices continued their gains on Monday, with Brent crude on track for a record monthly increase, following the Houthis’ first attacks on Israel at the start of the week. The development has further widened the scope of the U.S.-Israeli conflict with Iran across the Middle East.
As of 03:42 GMT, Brent crude futures jumped by $2.43, or 2.16%, reaching $115 per barrel after closing 4.2% higher on Friday. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose to $101.50 per barrel, up $1.86 or 1.87%, following a 5.5% gain in the previous session.
Vandana Hari, founder of Vanda Insights, said the market has largely ruled out the possibility of ending the war through negotiations, despite claims by President Donald Trump of “direct and indirect” talks with Iran and his readiness for a sharp escalation in military action. She noted that this outlook is bullish for crude oil, though uncertainty remains about the timing and nature of any resolution.
Trump stated that the United States and Iran are engaging “directly and indirectly,” adding that Iran’s new leadership is “very rational,” as additional U.S. forces arrive in the region. Meanwhile, the Israeli military said on Monday that it is targeting Iranian government infrastructure across Tehran.
Brent crude has surged by 59% this month—its largest monthly increase on record—surpassing gains seen during the 1990 Gulf War. The spike comes after the conflict with Iran effectively led to the closure of the Strait of Hormuz, a critical passage for roughly one-fifth of global oil and gas supplies.
The war, which began on February 28 with U.S. and Israeli strikes on Iran, has expanded across the Middle East. On Saturday, Yemen’s Iran-aligned Houthis launched their first attacks on Israel since the conflict began, raising concerns over shipping routes around the Arabian Peninsula and the Red Sea.
Analysts at JPMorgan, led by Natasha Kaneva, said in a note that the conflict is no longer confined to the Gulf and the Strait of Hormuz but has extended to the Red Sea and the Bab el-Mandeb Strait—one of the world’s most vital routes for crude oil and refined products.
According to data from Kpler, Saudi crude exports rerouted from the Strait of Hormuz to the Red Sea port of Yanbu reached 4.658 million barrels per day last week.
Reuters
