Oil Prices Soar Above $90 as US-Iran Tensions Reignite Supply Fears

Crude oil prices surged above $90 per barrel after fresh military exchanges between the United States and Iran reignited fears of supply disruptions through the Strait of Hormuz.

The escalation pushed Brent crude up $2.21, or 2.5%, to $90.31 per barrel, while U.S. West Texas Intermediate (WTI) gained $1.83, or 2.2%, to $85.23 as traders priced in the risk of prolonged instability in the Gulf.

The latest flare-up began after the U.S. struck Iranian rocket launchers on Larak Island in the Strait of Hormuz on Sunday, saying the launchers were being prepared for the deployment of sea mines in the waterway.

Captain Tim Hawkins, spokesman for the U.S. Central Command, said Iranian Revolutionary Guard Corps forces had been observed preparing rockets capable of deploying sea mines into the strait.