• Oil prices surged to their highest since January following US strikes on Iranian nuclear sites.
• Market analysts predict further increases if Iran retaliates, especially regarding the Strait of Hormuz.
• The closure of the Strait could significantly disrupt global oil supply, with potential prices surpassing $100 per barrel.
• Geopolitical tensions have heightened, affecting stock markets and global trading sentiments.
• OPEC is closely monitoring the situation as it plans to discuss output adjustments.

Oil prices jumped significantly after the United States, joining Israel, conducted airstrikes on key Iranian nuclear facilities over the weekend. Brent crude futures rose to as high as $81.40 per barrel, while U.S. West Texas Intermediate (WTI) also experienced notable gains, reflecting heightened market tension. As of Monday, Brent was reported at $78.93, marking a substantial increase, with analysts speculating further gains due to fears of Iranian retaliation, particularly concerning the Strait of Hormuz, a crucial oil transit route, according to Reuters and Channel News Asia.

The ramifications of the U.S. strikes have fueled concerns about the stability of oil supply chains, especially as Iranian lawmakers have backed a measure to consider closing the Strait of Hormuz in response to these attacks. A significant portion of the world's oil supply, roughly one-fifth, passes through this essential corridor. Market analysts suggest that any closure could drive prices even higher, with Goldman Sachs projecting a spike to $110 per barrel if oil flows are significantly reduced. This scenario underscores the critical role the strait plays, as oil also accounts for a substantial part of Iran's national revenue, presenting a complex dilemma for Tehran, according to India Times, Newsweek, and Reuters.

As oil prices surged, Asian stock markets showed signs of stress, with the Hang Seng index sliding as investors reacted to the escalating conflict. Analysts emphasize that despite a rapid price rise, demand remains uncertain, which may hinder sustained price increases. OPEC's upcoming meeting is crucial, as they plan to discuss potential output adjustments in light of the current conflict and the associated risks. The group's capability to regulate supply may play a pivotal role in stabilizing the market, as energy specialists anticipate potential disruptions to oil supply routes, impacting economies that heavily rely on oil imports, according to Newsweek and Reuters.