FX.co ★ Oil Jumps as Iran and Israel Exchange Missile Strikes

WTI crude futures surged more than 4% to above $94 per barrel on Monday, rebounding after a two-session slide, as Iran and Israel exchanged missile strikes. The escalation raised concerns that it could undermine President Trump’s efforts to broker a new 60-day ceasefire with Tehran. The proposed truce is intended to create conditions for broader negotiations aimed at a permanent resolution of the conflict. Trump also urged both sides to refrain from further military action and emphasized that talks are continuing despite the renewed hostilities. At the same time, the protracted conflict and the near-blockade of the Strait of Hormuz have disrupted energy flows from the Persian Gulf, continuing to support higher oil prices. Separately, OPEC+ approved an additional increase of 188,000 barrels per day in its July production quota, even as ongoing tensions in the Middle East keep supply risks elevated.