Oil surges above $90 as US strikes Iran
What's the story
Oil prices surged over 2% on Monday after US forces targeted two Iranian launchers on Larak Island in the Strait of Hormuz. The attack has raised concerns over rising tensions in the Gulf and possible disruptions to global oil supplies. Brent crude futures rose by $2.22 or 2.52%, to $90.32 a barrel, while US West Texas Intermediate (WTI) crude increased by $2.01 or 2.41%, to $85.41 a barrel on Monday morning.
Military action
US strikes on Iran raise fears of oil supply disruptions
The US strikes on Larak Island, in the Strait of Hormuz, a strategic global oil shipping route, are the first such attacks on the Gulf nation since late July.
The recent military action has intensified market fears that further escalation between the US and Iran could endanger energy infrastructure or disrupt shipping through this key waterway.
The Strait of Hormuz is especially crucial for global energy markets as it handles a major portion of the world's oil and gas shipments.
Market response
Investors watch for signs of escalation in Gulf
Investors are closely monitoring developments in the Gulf region for signs of a wider escalation.
Any prolonged disruption to oil flows could further drive up crude prices and raise inflation concerns across major economies.
The rise in oil prices comes amid heightened geopolitical risks in West Asia, with traders considering how US-Iran tensions could affect global energy supplies.