Global oil prices climbed sharply on Monday as renewed conflict in the Middle East raised concerns over potential disruptions to energy supplies.

Brent crude rose above $96 a barrel after reports of fresh military actions involving Iran and Israel heightened fears that the conflict could spread further across the region.

Investors are particularly worried about the security of the Strait of Hormuz, one of the world’s most important oil-shipping routes.

The price jump comes just days after oil markets had fallen on hopes that diplomatic efforts could ease tensions.

However, the latest developments have prompted traders to return to safe-haven assets and reassess the risks facing global energy supplies.

Analysts say any prolonged disruption in the region could push oil prices even higher and add fresh inflationary pressure to economies around the world.

Commenting on the market reaction, analysts at ING said that the renewed escalation has “reintroduced a significant geopolitical risk premium into oil markets.”

Meanwhile, market participants continue to monitor developments closely for signs of either further escalation or renewed negotiations.

Source: Reuters.