Washington: Oil prices surged by approximately 5% on Monday following US President Donald Trump's statement that a 'massive escalation' against Iran was still an option. This announcement has intensified uncertainty surrounding negotiations to resolve the ongoing conflict and fully reopen the Strait of Hormuz.

According to Anadolu Agency, international benchmark Brent crude increased by 5% to reach $87.7 per barrel as of 2005GMT, marking its highest point in nearly two weeks. Similarly, the US benchmark West Texas Intermediate (WTI) climbed by 5.1% to $82.2. Brent crude has now extended its gains for a fourth consecutive trading session, as markets evaluate the potential for further military action and ongoing disruptions to energy shipments through the strategic waterway.

In response to inquiries about whether a significant escalation against Iran was still being considered, Trump stated that Washington was capable of pursuing that course of action. "Well, we have that certain ability if we want to do that," he remarked to reporters at the White House. Trump further insisted that Iran should compensate for damages caused over the past 50 years, dismissing Tehran's demands for war compensation during negotiations.

While Trump asserted that the Strait of Hormuz was open and '100%' controlled by the US, he acknowledged the possibility of Iran attempting to disrupt maritime traffic. Tehran has maintained that Washington must lift its blockade before Iran agrees to fully reopen the waterway, a critical passage for a significant portion of global oil and liquefied natural gas supplies.

The escalation in oil prices was also bolstered by reports of attacks on Saudi Arabia's Jazan refinery and a tanker operated by the Abu Dhabi National Oil Co. over the weekend. Additionally, crude stocks in the US Strategic Petroleum Reserve fell below 300 million barrels to approximately 298.7 million last week, marking their lowest level since 1983.