Oil prices jumped more than 3% on Monday, June 8, 2026, as tensions in the Middle East flared up once again, raising fresh concerns over global oil supplies. According to Business-Today, global crude benchmarks gained sharply as the crisis entered its 100th day, with peace efforts yielding little progress. As of 7:50 am, WTI crude was trading at $93.87 per barrel, up $3.33 or 3.68%, while Brent crude rose $3.27, or 3.51%, to $96.36 per barrel. The gains reversed most of last week's losses, when oil prices had declined amid expectations of a de-escalation in tensions between the United States and Iran.
Geopolitical Escalation and Market Reaction
The latest escalation began with Iranian missile strikes on Israel, prompting a retaliatory response from Israel. Business-Today reported that the Israeli Air Force said it carried out strikes on military targets linked to the Iranian regime in western and central Iran, guided by Military Intelligence. Market sentiment shifted further after Israel launched renewed attacks on Lebanon on Sunday despite an existing truce between the two countries. Iran has linked any peace agreement with the United States to a ceasefire involving Lebanon. Following the strikes in Beirut, Iran responded by firing missiles at Israel in support of its ally Hezbollah.
Israel entered Lebanon in March after Hezbollah, backed by Iran, launched rockets and drones across the border. On June 3, Lebanon and Israel announced that they had agreed to a ceasefire following negotiations in Washington. However, violence continued despite an earlier agreement to halt hostilities in April. The wider conflict has remained largely on pause since the US and Israel suspended attacks on Iran in early April, but Tehran has continued to block most shipping through the Strait of Hormuz, contributing to an ongoing supply crisis.
Supply Disruption and OPEC+ Response
| Benchmark | Price (June 8) | Change | % Change |
|---|---|---|---|
| WTI Crude | $93.87/bbl | +$3.33 | +3.68% |
| Brent Crude | $96.36/bbl | +$3.27 | +3.51% |
OPEC+ on Sunday approved its fourth oil output increase in four months. According to Business-Today, the group agreed to raise production targets by 188,000 barrels per day from July, matching June's rise. The June increase had already been reduced from the monthly increases of 206,000 barrels per day approved in April and May following the United Arab Emirates' departure from the organisation. Analysts said the move was unlikely to significantly ease supply concerns because many members are unable to meet production targets due to the Strait of Hormuz closure. Russia has also faced production challenges as infrastructure attacks have reduced its output capacity.
- The Strait of Hormuz remains a key chokepoint, with Iran blocking most shipping.
- OPEC+ members' inability to boost output due to the blockade and Russian infrastructure damage undermines the production increase.
- Market participants are closely watching for any diplomatic breakthroughs that could reopen the strait.
The ongoing conflict and supply disruptions continue to drive volatility in crude markets, with traders bracing for further price swings as the 100-day crisis shows no sign of resolution.
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