Oil prices surged to their highest levels since January on Monday, following U.S. airstrikes targeting Iran, which exacerbated the crisis in the Middle East and raised concerns about a potential disruption in energy supplies from the region.
Brent crude futures rose by $1.92, or 2.49%, to reach $78.93 per barrel. Meanwhile, U.S. West Texas Intermediate crude contracts increased by $1.89, or 2.56%, to hit $75.73.
Both types of crude experienced a jump of over three percent earlier in the session, reaching $81.40 and $78.40 per barrel, respectively, the highest levels they had hit in five months, before retreating from some gains.
Goldman Sachs reported on Sunday that Brent crude could briefly peak at $110 per barrel if oil flows through the vital shipping lane were to be halved for a month and then remain ten percent lower for the subsequent eleven months.
The bank still assumes that there will be no major disruptions in oil and natural gas supplies and has suggested global incentives to prevent a significant and prolonged outage.
