World crude oil prices jumped sharply as Brent Crude Oil rose by up to 7% following reports that the United States is considering military action against Iran.
Concerns over supply disruptions from the Middle East were the main drivers of the rise, especially as strategic routes such as the Strait of Hormuz continue to be affected.
Brent futures reached around $124.84 a barrel, while West Texas Intermediate (WTI) rose to $109.64.
Both benchmarks are now on track to record a fourth consecutive month of gains, with Brent having more than doubled since the beginning of the year, while WTI has risen by more than 90%.
Geopolitical tensions remain a dominant factor as President Donald Trump is reported to be briefed on a possible attack on Iran.
The ongoing conflict and Iran's retaliatory actions by blocking shipping lanes have triggered the largest energy supply disruption in global markets.
Negotiations between the two sides remain deadlocked, with the US pressing for the nuclear issue while Iran demands control of strategic waterways and war reparations.
Analysts expect the risk of supply disruptions to persist in the short term, keeping pressure on oil prices.
Meanwhile, OPEC+ is expected to only increase production by a small amount, which is not seen as enough to cover the current supply shortage.
While high prices may suppress global demand, analysts say the reduction in consumption is not yet enough to offset the ongoing supply crisis.
