Oil Prices Surge: WTI crude +20% to $111 as Iran war blocks Hormuz; Khamenei son supreme leader amid Israeli Beirut strikes. Consumers face months high fuel.
Beirut Command Hits Spark Global Fuel Crisis - US Oil Futures Climb 22% on Supply Panic (Image: Ref)
US crude futures exploded more than 20% Monday to their highest since July 2022, with West Texas Intermediate rocketing as much as $20.34 per barrel to $111.24 amid panic over the expanding US-Israeli war with Iran strangling the Strait of Hormuz oil artery. WTI settled up 16.31% at $105.73 after Friday's 12% leap, capping a 36% weekly frenzy as Tehran's hardliner succession and Israeli Beirut strikes signal no quick end to supply nightmares.
Traders bid WTI up 22.4% intraday to $111.24 before settling $14.83 higher at $105.73 by 2220 GMT, reflecting sheer terror over Hormuz—the chokepoint funneling one-fifth of global oil. Friday's 12% surge already priced in war risks; Monday's blast came as Iran named Mojtaba Khamenei supreme leader, cementing defiant regime control.
Iran's clerical council vote for Ali Khamenei's son—architect of security forces and business empires—dashed hopes of moderation a week into devastating US-Israeli airstrikes. The hardliner handover signals prolonged resistance, keeping Hormuz contested and tankers docked. Oil markets now bake in extended disruptions from damaged facilities to shipping insurance meltdowns.
Israel expanded deep into Lebanon Sunday, killing Iranian commanders in central Beirut hotels after days pounding Hezbollah suburbs that claimed nearly 400 lives. The IDF's Beirut heart strikes underscore war's uncontained spread, hammering investor confidence in quick de-escalation. Gulf desalination plants, fuel depots already smolder from retaliations.
Even swift ceasefire leaves weeks or months of pain: refineries crippled, logistics snarled, tankers shunning Gulf routes. Iraq slashed output 70% last week; Kuwait declared force majeure. Global businesses from airlines to factories brace rationing as $100+ crude becomes new normal.
A: 22.4% intraday to $111.24; settled +16.31% at $105.73 amid Iran war escalation.
A: Mojtaba Khamenei, son of slain Ali Khamenei; vote cast Sunday.
A: Nearly 400 Lebanese lives claimed in week of Hezbollah suburb barrages.
A: 36% surge including Friday's 12% single-day leap.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
