Oil prices jumped in early trading as tanker traffic through the Strait of Hormuz was halted following Israel's attacks on Lebanon, according to Iran's Fars News Agency. The waterway, which handles one-fifth of global oil shipments, has become a flashpoint as concerns grow about the stability of the U.S.-Iran cease-fire. Market analysts warn that renewed tensions could keep vessels away from the region in the near term.

Front-month WTI crude oil futures climbed 2.8% to $97.03 per barrel, while Brent crude oil futures rose 2.5% to $97.14 a barrel. ANZ Research analysts noted that exporters and ship owners are likely to show reluctance in returning vessels to the area while uncertainty persists. The price surge reflects growing anxiety about potential supply disruptions in a critical shipping lane.

The market reaction underscores how quickly geopolitical tensions can impact energy prices. With the Hormuz Strait closed to traffic, traders are pricing in the risk of prolonged supply constraints. The situation highlights the vulnerability of global oil markets to regional conflicts and the strategic importance of this narrow waterway for international energy security.