Brent Crude Surges to Over $90/Barrel Amid US-Iran Tensions
The US military's strike on Iran has sent Brent Crude futures soaring to over $90 per barrel, up 2.52% from the prior weekend's close. This marks the first confirmed direct US military attack on Iran since late July.
The target of the strike was a group of rocket launchers at Iran's Larak Island near the Strait of Hormuz, which were in the process of preparing to deploy mines into the critical chokepoint for global crude transport.
U.S. Central Command (CENTCOM) spokesman Tim Hawkins stated that US forces took military action to prevent such activity, but some market participants have assessed the actual US response as 'not as hawkish as expected'.
Roughly 6-8 million barrels per day of crude continue to transit the Strait of Hormuz despite the tensions, with Iranian authorities reportedly collecting transit fees from vessels using approved shipping lanes.