By Rajwa Quasim
Oil prices surge on Monday as U.S.-Iran tensions trigger a new wave of hostilities over the Strait of Hormuz, a major global oil transit route.
Brent crude rose more than 4%, raising fears of potential disruptions of global oil supplies, following an exchange of attacks by both countries. Brent crude for futures reached the highest ever since June 22, as it reached $78.82 a barrel.
The U.S. Central Command (CENTCOM) carried out dozens of strikes on Iran, after accusing Iran of attacking a Cyprus-flagged ship container MV GFS Galaxy in the Strait. The CENTCOM said on Sunday that the Strait of Hormuz is a vital maritime corridor carrying global trade and Iran does not control it.
In response to the U.S. attack, Iran targeted United Arab Emirates, Qatar, Oman, Bahrain and Kuwait by launching a wave of missile and drone attacks.
READ: World reacts to US, Iran striking a peace deal to end war (June 15, 2026)
Meanwhile, Iran’s Persian Gulf Straight Authority issued a warning against vessels navigating the Strait of Hormuz, stating that vessels that use undesignated route will not be protected under its safe passage guarantee. They further stated that consequences arising from such situations shall be the responsibility of the owner, vessel commander and operator.
The maritime traffic in the Strait of Hormuz had declined briefly, following the signing of memorandum of understanding on ending the war between Washington and Tehran last month.
Oil prices had stabilized after signing of memorandum of understanding, returning to pre-war levels. However, renewed tensions have pushed prices up again, to 9% higher than they were before the attacks by U.S. and Israel on Iran in February 2026 and the Brent crude price is expected to remain in the upper $70s per barrel over the next two months as geopolitical tension persists.