Oil prices jumped as traders feared fresh US‑Iran clashes could tighten crude flows through the Strait of Hormuz. Brent rose 3 % to $78 a barrel, while WTI climbed almost 4 % to $79 a barrel at the start of Asian trading.

The spike followed a weekend of escalating strikes, with the US hitting Iran with missile attacks for the fifth time after Iran allegedly targeted the Cyprus‑flagged container ship M/V GFS Galaxy. Despite Iran’s claim of closing the strait, US Central Command said traffic was flowing and that control of the waterway was unresolved.

Analysts noted the market was pricing a possible return to war, though both sides appear reluctant to fully engage. Kpler data showed 12 crossings on Friday, 13 on Saturday, and only 3 so far on Sunday.

While Brent is still far from the wartime peak of $126, it sits near its pre‑war level of $72.48. Global supply rose to 98.8 mn barrels per day in June, yet output remains 9.4 mn barrels below pre‑war levels, according to the IEA. Concerns also linger over diesel and refined product prices amid strait disruptions and Russia’s temporary diesel export ban.