Oil Prices Soar After US Strike on Iranian Rocket Launchers

The global market reacted to the US strike on Iranian rocket launchers with a surge in oil prices, exceeding 3% in early European trading. Brent crude jumped 3.8% to $91.40 per barrel and US benchmark crude oil rose 3.8% to $86.58 per barrel.

The move marked the first military action by the US in a month, shifting its focus from economic pressure to open conflict. The Middle East had experienced relative calm, but the strike served as a reminder that peace is not guaranteed.

Market analysts attributed the oil price surge to the sudden escalation of tensions in the region. Stephen Innes of SPI Asset Management commented that 'the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude... Then Sunday arrived, with a reminder that quiet in the Strait of Hormuz is not the same as peace.'

The strike also contributed to a decline in US futures, with the S&P 500 and Dow Jones Industrial Average falling 0.2%.