Iran Conflict Escalation Drives Oil Prices Higher

Oil prices surged more than 3.5% on Monday after the US attacked an Iranian island in the Strait of Hormuz, prompting a retaliation from Tehran and extending their six-month conflict.

Brent crude futures rose $3.15 to $91.25 a barrel at 0903 GMT, while US West Texas Intermediate crude jumped $2.96 to $86.36, with markets concerned about further oil supply disruptions.

US forces struck two launchers on Iran's Larak Island on Sunday, the first known American strikes on the country since late July, according to Reuters.

Giovanni Staunovo, an UBS analyst, said 'Renewed military strikes in the Middle East and concerns of further oil supply disruptions have lifted oil prices', with markets now focused on whether the situation de-escalates or not.