Oil prices climbed in Asian trading on Monday after Iran fired missiles towards Israel, reviving fears that the latest bout of violence could undermine an already fragile ceasefire and disrupt energy supplies from the Gulf.
Brent crude, the international benchmark, rose 2.6% to $95.50 a barrel, while U.S. crude gained 2.5% to reach $92.75. The increase came as traders weighed the prospect of a broader escalation and the risk of further pressure on shipping routes that are crucial to global oil and gas flows.
The missile launches were Iran’s first against Israel since a ceasefire involving Tehran, Israel, and the United States was agreed in April. The arrangement has been repeatedly tested by fresh attacks, leaving markets increasingly sensitive to any sign that the conflict could intensify.
Iran’s Islamic Revolutionary Guard Corps said the latest strikes marked the start of “a full week” of attacks. Israel’s military, meanwhile, said it was ready to “strike the enemy” once it received the order to respond.
U.S. President Donald Trump has sought to prevent another round of retaliation as Washington continues efforts to secure an agreement with Tehran. According to Axios, Trump said he planned to speak directly with Israeli Prime Minister Benjamin Netanyahu.
“I am going to call Bibi right now and tell him not to retaliate,” Trump said.
“We are very close to a final deal with Iran. It is going to be a good deal. I don’t want it to blow up because of what is happening now,” he added.
Oil markets have remained volatile since the United States and Israel launched strikes against Iran in late February. Prices have hovered near $95 a barrel over the past week as investors assessed whether the conflict could cause lasting damage to regional exports.
Attention has remained focused on the Strait of Hormuz, one of the world’s most important energy corridors. Iran has threatened to target vessels passing through the waterway in response to U.S.-Israeli attacks. Any further disruption could restrict supplies, raise transport costs, and add fresh pressure to global oil prices.