West Texas Intermediate (WTI) opened the week on Monday with a massive gap of over 5%, accelerating its upside to break through the critical $72 mark.

The tremendous buying pressure around the US oil is solely attributed to the escalating geopolitical conflict between the United States (US) and Iran, actively supported by Israel.

The US and Israel orchestrated strikes on Iran on Saturday, plunging the Middle East into a new war and prompting the Iranian Islamic Revolutionary Guard Corps (IRGC) Navy to announce the stoppage of shipments through the Strait of Hormuz. More than 20% of global oil is moved through the Strait of Hormuz.

“Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through the waterway,” per Reuters.

Looking ahead, the upside risks in Oil prices remain intact as US President Donald Trump vowed to continue combat military operations in Iran until all of America’s objectives are achieved.

Though the initial jump in WTI could be reversed if profit-booking takes over in the day ahead, with traders awaiting more updates on the US-Iran war.

Meanwhile, markets could also digest the news that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed a modest oil output boost of 206,000 barrels per day (bpd) for April, which was higher than the analysts’ expectations.