Oil Prices Soar After US Strikes Iranian Island in Strait of Hormuz
Oil prices rose sharply on Monday after the United States launched an attack on Iranian island Lark Island in the Strait of Hormuz, prompting a response from Tehran.
The assault marked the first known U.S. strikes on Iran since late July, and oil prices responded accordingly, with Brent crude futures increasing by $1.08 or 1.23% to $89.18 a barrel, while U.S. West Texas Intermediate (WTI) crude rose by 92 cents or 1.10% to $84.32 a barrel.
The Strait of Hormuz, through which one-fifth of global oil supplies pass, has been the focal point of the Middle East conflict since it began in late February. The number of cargo vessels seen sailing through the strait at the start of the week fell to five per day due to companies' caution over the risk of attacks on vessels.
U.S. President Donald Trump stated that oil resulting from a recently reached agreement with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen close to its lowest level in nearly 44 years.