The global oil market witnessed one of its most dramatic trading days in years on Monday, as prices swung violently amid escalating geopolitical tensions and sudden policy signals, pushing traders to their limits.
Benchmark oil contracts surged as much as 29% early in the session following a weekend of grim developments in the Middle East conflict involving the US, Israel and Iran. With maritime traffic through the Strait of Hormuz nearly at a standstill and Persian Gulf producers locking in output, fears of supply disruption sent Brent crude soaring to nearly $120 per barrel — levels last seen in mid-2022, said a Bloomberg report.
But the rally proved short-lived.
Markets quickly reversed course after the Group of Seven signalled a potential coordinated release of crude from strategic reserves. Additional comments from Donald Trump suggesting the conflict could end soon further cooled market fears, triggering a sharp sell-off.
The sudden shift led to the largest intraday reversal ever recorded for Brent crude, with prices plunging from their peak to the day’s closing level — volatility reminiscent of the extreme swings seen during the COVID-19 pandemic.
For traders accustomed to volatility in the world’s most traded commodity, Monday’s moves were unusually intense.
Toby Copson, a portfolio manager at Davenport Energy in China, described the session as exhausting despite the opportunities created by the price swings.
He said trading desks were operating around the clock as markets reacted to a flood of geopolitical headlines, statements and social media posts influencing sentiment in real time.
Veteran market participants said the session triggered widespread panic trading across commodity markets.
Nick Twidale of AT Global Markets said traders and clients were scrambling for clarity as prices moved wildly. Even with nearly three decades of experience, he described the situation as chaotic, with constant calls and alerts flooding trading desks.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
