Oil Prices Surge Past $105 Per Barrel

Oil prices climbed sharply on Sunday following the appointment of Mojtaba Khamenei as Iran’s new supreme leader, replacing his father after a Feb. 28 U.S.-Israeli airstrike killed Ali Khamenei. Trading Economics data indicated that crude benchmarks reacted to heightened Middle East tensions and potential disruptions in the Strait of Hormuz, a key conduit for global oil shipments.

The price of Brent crude, the international benchmark, stood at $101.19 per barrel shortly after trading resumed on the Chicago Mercantile Exchange, up 9.2 percent from Friday’s close of $92.69. West Texas Intermediate (WTI), the U.S. light, sweet crude, reached $107.06 per barrel, representing a 16.2 percent increase over Friday’s settlement of $90.90.

The surge reflects market concern over supply chain risks in the Gulf. The Strait of Hormuz, through which approximately 20 percent of global oil trade passes, is particularly sensitive to geopolitical instability. Investors reacted to the leadership change in Iran as a factor that could influence regional decision-making and maritime security, even though immediate production levels remained unchanged.

Analysts noted that both Brent and WTI could continue to fluctuate in intraday trading as markets digest the implications of the leadership transition. Crude prices remain highly sensitive to regional political developments and military escalations.