Global oil prices jumped sharply on Monday after Israel and Iran exchanged fresh strikes, raising fears that the conflict could further disrupt energy supplies from the Middle East.
Brent crude for August delivery climbed 5.1 percent to $97.83 per barrel, while U.S. benchmark West Texas Intermediate rose 4.8 percent to $94.85, as traders reacted to the latest escalation between the two regional rivals.
Iranian media reported that Israel targeted the Karun Petrochemical Company in the southwestern city of Mahshahr. Local reports said projectiles struck the facility, prompting authorities to evacuate daytime workers from the surrounding petrochemical economic zone.
The attack marks another sign of rising tensions despite ongoing diplomatic efforts to prevent the conflict from expanding further.
Iran’s state news agency IRNA confirmed that employees were evacuated from the area following what it described as an aerial attack by Israel.
Founded in the early 2000s, Karun Petrochemical Company is one of Iran’s major petrochemical producers, manufacturing more than 200,000 tonnes of products annually.
The latest exchange of fire came only hours after U.S. President Donald Trump urged Israel to avoid retaliatory actions following recent Iranian missile launches, underscoring the fragile state of efforts aimed at easing tensions.
Investors remain concerned that continued hostilities could threaten critical energy infrastructure across the region and further disrupt oil flows, particularly as uncertainty persists around shipping routes and broader stability in the Middle East.
The renewed fighting has added fresh volatility to global energy markets, pushing crude prices closer to the $100-per-barrel mark and fueling concerns about the potential impact on inflation and economic growth worldwide.
