Oil prices jumped sharply on Monday as disruptions to tanker traffic through the Strait of Hormuz heightened uncertainty over the impact of US and Israeli attacks on Iran on global energy supply.

US crude rose 7.4 percent to $71.97 per barrel, while international benchmark Brent gained 7.7 percent to $78.46 per barrel.

The spike has renewed concerns over higher fuel costs, raising the prospect of costlier gasoline in the United States and increased prices for goods globally at a time when many economies are grappling with inflationary pressure.

Market focus centred on the Strait of Hormuz at the southern end of the Persian Gulf, a strategic chokepoint through which around 20 percent of the world’s oil supply passes daily.

Tanker traffic through the strait dropped sharply amid disruption to satellite navigation systems, according to data and analytics firm Kpler. The UK Maritime Trade Operations Centre also reported attacks on several vessels on either side of the strait and warned of heightened electronic interference affecting ship-tracking systems.

In a related development, a bomb-laden drone boat struck a Marshall Islands-flagged oil tanker in the Gulf of Oman on Monday, killing one crew member, authorities in Oman said. Iran has reportedly threatened vessels approaching the Strait of Hormuz and is believed to have launched multiple attacks.

Saudi authorities said they intercepted Iranian drones targeting the Ras Tanura oil refinery near Dammam. The refinery was shut down as a precaution, Saudi state television reported.

Analysts said Monday’s $5–$10 per barrel increase was broadly in line with expectations driven by geopolitical risk premiums following the outbreak of hostilities. Some of the war-related concerns had already been priced in before the escalation.

However, a prolonged disruption to shipping through the strait or damage to oil infrastructure in other Gulf producers could push prices significantly higher, analysts warned. Conversely, a short-lived conflict with limited and reversible disruptions may prevent the current price spike from persisting.