Oil Rebounds as US Launches New Strikes on Iran

Oil prices rebounded on Monday after the United States launched fresh military strikes on Iran, clouding the outlook for an interim deal between Tehran and Washington that could have reopened the Strait of Hormuz. Brent crude rose above $72 per barrel, recovering from earlier losses as geopolitical risk premiums returned to the market.

The US strikes mark a significant escalation in tensions, just as diplomatic efforts to secure a temporary agreement to ensure safe passage through the Strait of Hormuz appeared to be gaining momentum. The strait is a critical chokepoint for global oil supply, with about 20% of the world's petroleum passing through it daily. Any disruption to tanker traffic there can quickly tighten physical crude availability and push prices higher. For traders, the renewed uncertainty means that the risk of supply disruptions is now back on the table, potentially supporting prices in the near term. Check NowPrice's fuel page for the latest Brent and WTI pricing.

Looking ahead, markets will closely watch for any further military developments and diplomatic signals from both sides. If the conflict escalates further, oil could test recent highs. Conversely, any sign of de-escalation or renewed talks could trigger a sharp sell-off. Traders should also monitor weekly US inventory data and OPEC+ production decisions for additional price direction.