Global oil prices climbed on Monday as concerns intensified over potential supply disruptions from escalating tensions in the Middle East, driven by the ongoing US–Israel war with Iran affecting key shipping routes.
Brent crude futures rose by US$1.71 (RM8.12), or 1.6 per cent, to US$110.74 (RM525.76) a barrel at 0057 GMT. Meanwhile, US West Texas Intermediate (WTI) crude gained US$0.71 (RM3.37), or 0.6 per cent, to US$112.25 (RM533.04) per barrel.
Markets had already seen sharp gains last week, with WTI surging more than 11 per cent and Brent rising nearly 8 per cent in volatile trading before the Good Friday break. The rally marked the biggest absolute price jump since 2020, fuelled by geopolitical risks and remarks by US President Donald Trump signalling continued strikes on Iran.
The Strait of Hormuz, a critical route for oil shipments from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely disrupted amid reported attacks on shipping following the outbreak of conflict on 28 February. Analysts warn that prolonged instability in the region could further tighten global supply.
Energy market observers noted that refiners are increasingly turning to alternative crude sources, including cargoes from the US Gulf Coast and the UK North Sea, as buyers compete aggressively for available supplies. One market note described strong bidding activity amid the ongoing supply squeeze.
Adding to market uncertainty, Trump on Sunday reportedly issued fresh threats against Iranian infrastructure, including power plants and bridges, should the Strait of Hormuz remain closed beyond Tuesday’s deadline.
Despite the tensions, some vessels—including an Oman-operated tanker, a French container ship and a Japanese gas carrier—have reportedly continued transiting the strait, suggesting selective passage for countries viewed as neutral or friendly.
Diplomatic efforts appear stalled, with reports indicating Iran has declined to meet US officials in Pakistan in the coming days, while ceasefire negotiations remain deadlocked.
Meanwhile, OPEC+ members agreed to a modest production increase of 206,000 barrels per day for May. However, analysts say actual output gains may be limited due to ongoing disruptions among key producers, including Russia, where Ukrainian drone strikes have impacted export infrastructure.
