Crude oil prices surged in Asian markets on Monday following Iran's missile attack on Israel and subsequent retaliatory strikes by the Israeli Air Force.

The attack marks the first direct missile strike by Iran on Israel since the ceasefire agreement reached among Iran, Israel, and the United States in April.

Following the escalation, Brent crude oil prices climbed 2.6 percent to USD 95.50 per barrel. Likewise, U.S. West Texas Intermediate (WTI) crude rose 2.5 percent to USD 92.75 per barrel.

Market participants reacted to growing concerns that rising geopolitical tensions in the Middle East could disrupt energy supplies and affect global oil markets.

Oil prices have experienced significant volatility since the ceasefire agreement was announced in April. Over the past week, crude oil had been trading around the USD 95 per barrel level before the latest developments pushed prices higher.

Analysts say continued instability in the region could keep energy markets on edge, with investors closely monitoring further developments between Iran and Israel.