Oil surges past $115 as Middle East conflict widens

Oil prices jumped on Monday, with Brent crude climbing above $115 a barrel, as escalating tensions in the Middle East heightened concerns over global supply disruptions.

The spike followed weekend missile attacks by Yemen’s Iran-aligned Houthi group on Israel, raising fears of a broader regional conflict. Ongoing hostilities between Iran and joint US-Israeli forces showed little sign of easing, with Washington deploying additional troops and Tehran warning it was prepared for a potential ground invasion.

Brent futures rose 2.3 per cent to $115.27 a barrel by 06:10 ET (10:10 GMT), while West Texas Intermediate crude gained 1.8 per cent to $101.46.

Analysts warned that the Houthis’ involvement could open a new front, particularly given risks to shipping routes in the Red Sea. Concerns remain elevated over the Strait of Hormuz—through which about a fifth of global oil supply flows—after Iran moved to restrict traffic.

Markets largely shrugged off upbeat comments from Donald Trump, who said talks with Iran were progressing and a deal could come soon, though uncertainty over a ceasefire and the risk of further escalation continued to drive prices higher.

Oil has surged sharply in March, with Brent up nearly 60 per cent as the conflict enters its second month, disrupting supply and fueling geopolitical risk premiums.

Attribution: Investing.com