RoydadNaft –  Brent crude futures rose $2.78 (up 3.05%) to $93.9 per barrel. U.S. West Texas Intermediate (WTI) crude futures climbed $2.88 (up 3.3%) to $90.24 per barrel.

According to Roydad Naft, oil prices surged more than 3% on Monday after Iran and the United States carried out mutual strikes, and Israel ordered its forces to push deeper into Lebanon in the ongoing war against Tehran-backed Hezbollah.

U.S. crude futures rose $2.88, or 3.3%, to $90.24 per barrel (as of 07:01 GMT). Brent futures gained $2.78, or 3.05%, to $93.9 per barrel.

The clashes dampened hopes for a U.S.-Iran announcement extending the ceasefire, which had come after Washington hosted Israel-Lebanon peace talks on Friday. The ceasefire had caused Brent and WTI prices to drop 1.8% and 1.7%, respectively, on Friday.

On Sunday, the United States announced it had carried out “self-defense strikes” on radar and drone control sites in Iran’s Goruk region and Qeshm Island, describing the action as a response to Tehran’s “aggressive moves.”

Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Monday that its Aerospace Force had targeted an airbase used by the U.S. in its attack on a telecommunications tower on Sirik Island.

U.S. President Donald Trump said on Friday that he would soon decide on a proposal to extend the ceasefire announced in early April. The extension would give negotiators more time to work toward a permanent end to the war and resolve the core dispute over Iran’s nuclear program.

Israel is expected to play a key role in any potential agreement, and Iran has repeatedly insisted that Hezbollah must be included in any deal. A U.S. official said on Sunday that Washington has proposed a “gradual de-escalation” plan, under which Hezbollah would first halt attacks on Israel, in exchange for Israel refraining from escalating tensions in Beirut.

Tony Seacombe, an analyst at IG, wrote in a note that concerns are growing over mines laid in the Strait of Hormuz — a vital waterway for oil and gas transport. This could slow the reopening of the strait, and even after reopening, any relief for the oil market would be delayed.

“Even if a deal is reached, it won’t result in a flood of supply,” Seacombe said.

An Axios reporter posted on X on Friday that Iran had laid more mines in the Strait of Hormuz earlier in the week. This came shortly after U.S. Defense Secretary Pete Hegseth warned that any further mine-laying would be considered a violation of the ceasefire.

The Strait of Hormuz carries about one-fifth of global oil and gas flows. Iran has effectively closed it since the start of clashes with U.S. and Israeli attacks on February 28.

These supply concerns overshadowed China’s weekend economic data, which showed a stall in factory activity. This has heightened worries about the world’s second-largest economy losing momentum amid declining exports and weakening domestic demand.

Goldman Sachs said on Sunday that weak oil demand in China and Europe poses a significant downside risk to its fourth-quarter price forecasts — $90 for Brent and $83 for WTI — although supply disruptions in the Middle East could still push prices higher.