Oil Surges Past $90 as U.S. and Iran Trade Military Strikes

Crude prices jumped sharply Monday after U.S. and Iranian forces exchanged direct military strikes, rattling energy markets even as diplomatic back-channels reportedly remained open.

Oil prices climbed above $90 a barrel following a confirmed exchange of military strikes between U.S. and Iranian forces.
Investors weighed the escalation against reports that both governments are still engaged in parallel negotiations.
The spike marks one of the sharpest single-session moves in crude markets since the 2022 Russian invasion of Ukraine.
Energy analysts warned that any disruption to Strait of Hormuz shipping lanes could push prices significantly higher.
White House and Pentagon officials had not issued a joint public statement as of Monday afternoon.

Oil prices surged past $90 a barrel Monday after the United States and Iran exchanged direct military strikes, sending crude markets into their sharpest single-session rally in years.

Brent crude climbed more than 7 percent at the open as traders priced in the risk of sustained conflict near the Strait of Hormuz, the chokepoint through which roughly 20 percent of global oil supply passes.

Sources familiar with the situation told the Wail that back-channel negotiations between Washington and Tehran had not collapsed, a detail that trimmed some early gains by midday but left prices well above Friday's close.

The exchange of strikes, which the Wail confirmed through U.S. defense and Iranian state media reporting, is the most direct military confrontation between the two governments in years.

Analysts at three major energy trading desks told the Wail that a sustained blockade or mining of Hormuz shipping lanes could push Brent toward $120. No such action had been confirmed as of Monday afternoon.

The White House and Pentagon had not issued a coordinated public statement on the scope or duration of the strikes as of press time.

Congressional leadership on both the House and Senate armed services committees is expected to receive classified briefings Tuesday morning.