Oil markets face significant volatility as regional tensions escalate.

Oil markets face significant volatility as regional tensions escalate. Brent crude jumped 13 percent to above $82 a barrel Monday, with analysts warning of sustained disruptions in the Strait of Hormuz. About one-fifth of global oil and liquefied natural gas flows through this critical waterway daily. Tanker traffic has largely stalled following US and Israeli military actions against Iran. Saudi Aramco halted operations at its Ras Tanura refinery, which processes 550,000 barrels daily, after a drone strike. ICE gasoil futures surged 20 percent. Citigroup raised its short-term Brent forecast by $15 to $85 per barrel, expecting trading between $80 and $90 this week. The bank assigns a 20 percent probability that prices could spike to $120 if regional infrastructure sustains further damage.