Oil rockets 30% to above $110/bbl

The price of crude oil surged over 30% on Monday, pushing the U.S. benchmark West Texas Intermediate (WTI) above $118 per barrel amidst escalating tensions in the Middle East. Concerns about prolonged supply disruptions due to ongoing conflict have intensified, with Brent Crude also witnessing a significant rise of over 27%. The conflict escalated when Iran appointed Mojtaba Khamenei as the successor to Supreme Leader Ali Khamenei, reinforcing hardline control amid rising hostilities with Israel and the United States. Israel's military operations have expanded, targeting Iranian commanders in Lebanon, further exacerbating fears of a broader regional conflict. This situation has the potential to lead to sustained higher fuel prices for consumers and businesses globally, even if the conflict resolves quickly, as supply chains and logistics remain severely disrupted. Although Saudi Arabia is ramping up oil shipments from the Red Sea, these efforts are insufficient to counter the significant supply losses anticipated from the crisis in the Strait of Hormuz, a vital artery for global oil transport.