Oil prices rose sharply on Monday following Iran's military exercises near the critical Strait of Hormuz, a vital oil transit route. The drills occurred just days before scheduled talks between Tehran and Washington, raising immediate supply concerns among traders. Oil futures surged by over 4% at one point, with Brent crude reaching $92 per barrel, as markets reacted to the heightened geopolitical risk. The Strait of Hormuz, through which roughly 20% of the world's oil flows daily, became the focal point of investor anxiety. Traders worry Iran could disrupt shipments during the talks, potentially triggering a broader supply crisis.