Oil Prices Spike as U.S. Joins Strikes on Iran’s Nuclear Sites

Oil prices surged on Monday following U.S. President Donald Trump's confirmation that American forces had targeted Iran's nuclear facilities over the weekend, aligning with Israeli strikes in a significant escalation of Middle East tensions.

Brent crude climbed to $78.53 a barrel, up nearly 2%, while U.S. West Texas Intermediate reached $75.35. Earlier in the session, both benchmarks hit five-month highs, driven by concerns over possible supply disruptions, The Caspian Post reports citing Kazinform.

“The current geopolitical escalation provides the fundamental catalyst for prices to traverse higher and potentially spiral towards $100, with $120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of SS WealthStreet.

Analysts warn that Iranian retaliation could include closing the Strait of Hormuz, a key route for about 20% of global oil supply. According to state-run Press TV, Iran’s parliament has approved a measure to close the strait.

“The parliament has reached the conclusion that the Strait of Hormuz should be closed,” said Major General Esmaeil Kowsari, a member of the parliament’s National Security Commission. “The final decision in this regard lies with the Supreme National Security Council,” Kowsari added.

Sparta Commodities analyst June Goh noted that “the risks of damage to oil infrastructure... have multiplied,” adding that shippers may begin avoiding the region.

Goldman Sachs warned Brent could briefly peak at $110 if oil flows through the strait are halved.