U.S. crude oil prices surged over 3% on Monday amid heightened tensions surrounding a potential Israeli strike on Iran following Tehran’s ballistic missile attack.

Last week, oil prices experienced significant gains, with West Texas Intermediate rising 9.09% for its largest weekly increase since March 2023, and Brent crude up 8.43%, marking its biggest advance since January 2023.

President Biden has urged Israel to refrain from targeting Iranian oil facilities, contributing to volatility in the market.

Experts caution that while the current market reflects concerns about strikes on Iranian oil assets, a worst-case scenario involving disruptions in the Strait of Hormuz—responsible for 20% of global crude exports—could have even more drastic effects on prices, as reported by CNBC

The ongoing conflict between Israel and Hamas, which is now expanding to include Hezbollah and Houthi militants, has yet to disrupt oil supplies, but analysts warn that risks could escalate as tensions continue to rise.

Written by Emily Begley