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EMEA Oil Update: Oil Prices Surge After Israel, Iran Exchange Military Strikes

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Brent futures climbed more than 4% on Monday following a major escalation of hostilities in the Middle East.

The Brent futures contract climbed 4.5% at $97.30 per barrel. Murban futures closed at $90.60 on June 5 and were not trading by the time of publication of this oil price update.

The price spike erased Friday's losses and was triggered by renewed Israeli airstrikes in Lebanon and southwest of Iran, Reuters reported. Iran has retaliated by firing missiles at Israel.

The sudden flare-up dashed recent hopes for a de-escalation in the wider regional conflict, market experts said.

"Brent crude jumped more than 3% in early Asia trading Monday after Iran fired missiles at Israel. Oil had already been elevated due to the ongoing Iran war disrupting Strait of Hormuz flows, with HSBC describing commodities as being in a super-squeeze," Saxo Bank analysts noted.

Despite the direct military exchanges, US President Donald Trump reportedly maintained that an agreement to end the wider regional conflict remains well within reach.

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