Oil prices jumped 3% on Monday, March 29, with Brent crude nearing $120 per barrel, building on last week's rally triggered by US-Iran threats. Escalating conflicts, including fears of a US ground offensive in Iran and Iran-aligned Houthi attacks on Israel, fueled the surge amid supply disruptions in key shipping lanes.
Following the prior week's oil price increases after threats by US President Trump and Iran to target energy facilities, tensions in the Middle East intensified further. Brent crude approached $120 per barrel on Monday, up 3%, per The Economic Times. Key drivers included concerns over a possible US ground offensive in Iran and attacks by Yemeni Houthis on Israel. Analysts warn of potential prices reaching $200 per barrel in prolonged conflict, with $80 as a near-term floor. Saudi Arabia is rerouting crude exports to bypass disruptions in the Red Sea and Bab el-Mandeb strait, vital for global supply. Ceasefire talks continue, but JP Morgan highlights risks of major supply issues if the conflict widens.
