Oil Prices Surge Amid Renewed Mideast Tensions
International benchmark Brent crude was trading at $93.89 per barrel by 10:10 a.m. local time (0710 GMT), a gain of approximately 2.9% from Friday's close of $91.12. US benchmark West Texas Intermediate (WTI) surged roughly 3.4% to $90.19 per barrel, up from $87.30 in the prior session.
US-Iran Strikes Rattle Markets
The rally was driven largely by weekend military exchanges between Washington and Tehran that rattled investors and renewed anxieties over the security of regional energy supplies and shipping lanes.
US Central Command (CENTCOM) confirmed late Sunday that American forces carried out what it called "self-defense strikes" against Iranian radar installations and drone command-and-control facilities in Goruk, Iran, and on Qeshm Island.
"The measured and deliberate strikes occurred on Saturday and Sunday in response to aggressive Iranian actions that included the shootdown of a U.S. MQ-1 drone that was operating over international waters," CENTCOM said in a statement.
CENTCOM added that US fighter aircraft responded "swiftly" to the drone incident, neutralizing Iranian air defense systems, a ground control station, and two one-way attack drones assessed as posing "clear threats" to vessels navigating regional waters. The command reaffirmed its mandate to defend American assets and interests across the region "in response to unwarranted Iranian aggression during the ongoing ceasefire."
Iran wasted no time in responding. Iran's Islamic Revolutionary Guard Corps (IRGC) announced early Monday that it had struck a US air base it alleged was used to launch an attack on a telecommunications tower on Sirik Island in southern Hormozgan province, according to an Iranian news agency.
In a statement cited by Mehr, the IRGC said its Aerospace Force targeted and destroyed the base from which the US operation against the communications facility was launched, claiming all designated targets were successfully hit. The force issued a stark warning, cautioning that any further American aggression would trigger a response "different in scale and nature," and placing responsibility for any escalation squarely on Washington.
Lebanon Fighting Adds to Regional Anxiety
Investors were also monitoring a simultaneous flare-up in Lebanon, where clashes between Israeli forces and Hezbollah persisted in defiance of an existing ceasefire accord.
The Israeli army confirmed Monday that one soldier was killed and three others wounded during continued fighting in southern Lebanon. One of the injured was listed in serious condition, with the remaining two sustaining minor wounds — all transferred to hospital for treatment, the army said. The Times of Israel attributed the casualties to an overnight drone strike launched by Hezbollah.
Trump Strikes Optimistic Tone Amid Escalation
Against the backdrop of military exchanges, US President Donald Trump offered a notably upbeat assessment of diplomatic prospects Monday morning. Posting on his Truth Social platform, Trump said Tehran "really wants to make a deal," describing any potential agreement as one that would be "good for the U.S.A. and those that are with us."
Supply Fears Override Weak China Demand Data
Analysts noted that geopolitical risk continued to dominate market sentiment, overshadowing bearish signals emerging from China, where recent economic data pointed to a slowdown in energy demand growth. With key production zones and vital transit chokepoints — including the Strait of Hormuz — remaining exposed to potential disruption, markets showed little appetite to price in softer fundamentals elsewhere.
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