Oil Jumps Toward $80 as Strait of Hormuz Fears Escalate Amid Iran Conflict

Oil markets rallied aggressively on Monday as escalating military action involving the U.S., Israel and Iran intensified concerns over Middle East supply routes — particularly the vital Strait of Hormuz.

Brent crude jumped 9.3% to $79.40 per barrel, marking a fresh 52-week high, while U.S. West Texas Intermediate (WTI) rose more than 9% to $73.10. The sharp move reflects mounting fears that energy flows from the Gulf could be disrupted if the conflict widens further.

U.S. President Donald Trump said the ongoing military campaign — dubbed Operation Epic Fury — would continue until American objectives are achieved. Israel also launched new strikes on Iran and Hezbollah targets in Lebanon following Iranian attacks on regional military and infrastructure sites.

The conflict has already rattled shipping markets. After three oil tankers were reportedly struck over the weekend, maritime operators have grown increasingly cautious about entering the Strait of Hormuz, a critical chokepoint that handles roughly a fifth of the world’s oil supply.

Analysts say the biggest immediate risk lies in transportation bottlenecks. While some producers have alternative routes, the capacity is limited. Oman and certain UAE infrastructure can partially bypass the Strait, and Saudi Arabia can redirect crude through its East-West pipeline to the Red Sea. However, those contingency routes cannot fully replace the volume that typically flows through Hormuz.

Even if around 5 million barrels per day can be rerouted, roughly 10 million barrels remain vulnerable, analysts noted. For Asian refiners — heavily dependent on Middle Eastern supply — the logistics challenge is growing.

Market participants are also watching for any direct damage to oil production or export infrastructure. Should facilities be targeted, analysts warn crude prices could spike toward $100 per barrel. The potential for broader regional escalation keeps risk premiums elevated.

For now, oil traders are pricing in uncertainty rather than confirmed supply losses. But with tensions high and shipping risks rising, the energy market appears poised for continu