Crude oil markets are preparing for continued volatility despite diplomatic efforts aimed at reducing tensions in the region.
Oil prices surged in early Monday trading as geopolitical tensions in the Middle East raised fears over potential disruptions to global supply routes.
At 7:19 am Asia time on April 13, West Texas Intermediate (WTI) crude rose to $104.8 per barrel, up $8.24 (8.53%) in the past session, while Brent crude climbed to $102.7, gaining $7.54 (7.92%). Murban crude, however, edged down 1.47% to $98.16. Natural gas also rose 2.15% to $2.705.
The rally reflects growing market concerns over the security of oil shipments, particularly through the Strait of Hormuz, amid escalating regional uncertainty.
Traders have been closely monitoring developments after recent missile and drone exchanges in the region, alongside uncertainty surrounding a potential U.S.–Iran ceasefire and its wider impact on regional conflicts involving other actors.
Both Brent futures on the Intercontinental Exchange and WTI contracts on the New York Mercantile Exchange surged as investors factored in a higher risk premium for Middle East supply disruptions.
Analysts note that even the perception of threats to shipping routes or production can lead to sharp price swings, particularly after a period of relatively stable output from major oil producers.
Rising insurance costs for tankers passing through the Gulf have further heightened concerns about potential transport bottlenecks.
Despite ongoing diplomatic efforts to ease tensions, markets remain sensitive, with expectations that any disruption—or signs of reduced oil exports from Gulf producers—could keep prices volatile in the near term.
