Crude oil prices on Monday jumped nearly 2 per cent after fresh Iran-Israel military exchanges following disagreements on the ceasefire over Lebanon. Oil prices rose $2 a barrel after the Israeli military carried out fresh strikes on Lebanon on Sunday, despite an existing ceasefire between the two sides.
The fresh escalations have dashed hopes for an end to the broader regional conflict and raised concerns about the possible disruption to crude shipments through the Strait of Hormuz.
Crude prices were hovering between $90 and $95 a barrel before the latest military exchanges but have now risen to $97 a barrel and could be on their way back to $100 a barrel if the situation does not de-escalate quickly.
Oil prices have caused uncertainty in global trade, especially in Asian countries which rely heavily on crude oil supplies from the Middle East.
Some Asian countries have already announced austerity measures to stabilise their economic activities.
Developed economies like Japan and South Korea are already using their precious and critical oil reserves to sustain the economy.
While developing, major economies like India have also introduced austerity measures to meet the shortage and keep the economy above the danger level.
Prices have fluctuated since 28 February 2026 when the United States and Israel launched military strikes on Iran’s nuclear sites, triggering a trilateral war in the Gulf.
The war has since severely disrupted the oil supply as Iran maintains absolute control of the critical waterway.
Also read: Crude oil prices drop sharply after fresh US-Iran skirmishes
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