By Boluwatife Oshadiya | June 8, 2026
Key Points
- Brent crude climbed nearly 5% to $97.69 per barrel amid renewed Middle East tensions
- Israel and Iran exchanged fresh missile and air strikes, raising fears of supply disruptions
- OPEC+ production increases helped limit further gains in global oil prices
Main Story
Global oil prices surged on Monday as renewed military exchanges between Israel and Iran heightened concerns about potential disruptions to crude supplies from the Middle East.
Brent crude, the international benchmark, rose approximately 4.9% to $97.69 per barrel from its previous close of $93.09. US benchmark West Texas Intermediate (WTI) also gained 4.5%, trading at $94.49 per barrel.
Market sentiment was shaken after Israeli forces reportedly struck a petrochemical facility in Mahshahr, southwestern Iran. Iranian authorities confirmed that projectiles hit part of the Karun Mahshahr Petrochemical Company complex, causing damage but no casualties.
The escalation followed overnight missile launches from Iran toward Israel, prompting air raid sirens across several Israeli cities and triggering interceptions by Israeli defence systems. Israel subsequently launched retaliatory strikes targeting locations in western and central Iran.
Adding to market concerns, Yemen’s Iran-backed Houthi movement announced restrictions on maritime passage for Israeli-linked vessels through the Red Sea and warned of intensified attacks on Israeli interests.
Analysts note that growing security threats around key shipping routes and energy infrastructure have increased concerns about supply disruptions, particularly around the strategically important Strait of Hormuz, through which roughly one-fifth of global oil supplies pass.
However, gains were partially capped after OPEC+ members confirmed plans to increase collective output by 188,000 barrels per day in July. Saudi Arabia and Russia are expected to account for the largest production increases.
What’s Being Said
“Markets are pricing in a higher geopolitical risk premium as concerns grow over potential disruptions to Middle Eastern oil exports and shipping routes,” energy analysts said in market commentary following Monday’s price rally.
“The planned OPEC+ production increase should provide some balance to the market, but geopolitical risks remain the dominant factor for now,” commodity strategists noted.
What’s Next
- Investors will closely monitor further military developments between Israel and Iran throughout the week
- Markets are expected to assess whether tensions threaten shipping activity through the Strait of Hormuz
- OPEC+ production increases scheduled for July will be watched for their impact on global supply balances
Bottom Line
The Bottom Line: Oil markets are once again being driven more by geopolitical risk than supply fundamentals. While OPEC+ output increases may help cushion the impact, any further escalation between Israel and Iran could push crude prices closer to the $100-per-barrel threshold and reignite inflation concerns globally.
