Oil Prices Soar 2% Amid Escalating Middle East Conflict

Oil prices surged more than 2% on Monday after the US launched an attack on Iran's Larak island in the Strait of Hormuz, prompting retaliation from Tehran.

The move marked the first known American strikes on the Gulf nation since late July. In response, Iran fired missiles at two US air bases in Jordan, according to Iranian media citing the Revolutionary Guards.

Brent crude futures climbed $2.51, or 2.85%, to $90.61 a barrel while US West Texas Intermediate crude was at $85.53, up $2.13, or 2.55%. IG market analyst Tony Sycamore said the conflict could escalate further, potentially pushing WTI above resistance at $85.80 to $85.90 a barrel.

Negotiations to end the conflict remain at an impasse, and mediators are working to reopen the Strait of Hormuz, through which a fifth of the world's oil flows. US Treasury Secretary Scott Bessent told Reuters on Sunday that the US is likely to issue new secondary sanctions weekly on Iran.