Oil prices climbed further on Monday after the US administration signalled that the Middle East crisis may persist for several more weeks, raising concerns over prolonged disruptions to global energy supplies. Donald Trump also called on other countries to help secure the Strait of Hormuz — one of the world’s most crucial routes for oil and gas shipments.
Global benchmark, Brent crude jumped 2.9% to almost $106.12 a barrel, according to CNN while US oil was up 2.6% reaching $101.53.
Oil markets have seen a sharp rally this month. Both benchmarks have surged by more than 40%, touching their highest levels since 2022. The spike followed US-Israeli attacks on Iran, after which Tehran disrupted shipping through the Strait of Hormuz. The closure has cut off around a fifth of global oil supply, creating what has been described as the biggest disruption to the market.
Earlier on Sunday, Trump said that the United States wants other countries to play a role in protecting the crucial energy corridor. He added that Washington is already holding discussions with several nations about taking steps to police the passage.
The US president also said that communication channels remain open with Iran, though he indicated scepticism about whether Tehran is prepared to engage in meaningful negotiations aimed at ending the conflict.
The situation escalated over the weekend when Trump warned of further strikes on Kharg Island oil export hub after US forces targeted military sites. Iran responded by warning of more retaliation. Kharg Island is responsible for handling roughly 90% of the country’s oil exports.
Following the strikes, Iranian drones targeted a key oil terminal in Fujairah in the United Arab Emirates. Four sources said oil loading activities at the facility have resumed, although it remains uncertain whether operations have fully returned to normal levels.
Meanwhile, as oil markets remain volatile, the International Energy Agency announced releasing over 400 million barrels of crude from strategic reserves soon. The record draw is intended to counter the surge in prices triggered by the ongoing Middle East conflict.
According to the agency, supplies from Asia and Oceania will begin flowing immediately. Stocks held in Europe and the Americas are expected to be released by the end of March.
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