Dicklyon, CC BY-SA 4.0 , via Wikimedia Commons
TORONTO — It comes as little surprise to people used to the volatile oil market that prices surged on Monday. Crude markets reacted sharply as conflict in the Middle East raised concerns about supply disruptions through the Strait of Hormuz, a key global energy shipping route.
West Texas Intermediate crude traded above 70 dollars per barrel, while Brent crude climbed to about 77 dollars. Prices rose as traders weighed risks tied to attacks in the region and threats to tanker traffic moving through the narrow waterway.
Analysts say markets are focused less on spare production capacity and more on whether oil can physically move to buyers. Disruptions to shipping routes have already led some vessels to reroute or pause transit, adding pressure across supply chains.
Industry observers say prices may continue rising as operating costs increase, including diesel fuel used by tankers, higher insurance premiums for shipping, and other logistical expenses linked to heightened security risks.
OPEC Plus announced a modest production increase for April, but analysts say additional output may offer limited short term relief if export routes remain under pressure. Markets are expected to remain volatile as investors watch whether regional tensions ease or escalate further.
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