Oil Prices Soar After US Strikes Iranian Launchers on Larak Island
Oil prices have risen following a US military operation against two Iranian launchers on Larak Island, near the Strait of Hormuz. The strikes were reportedly aimed at preventing Iran from launching rockets carrying sea mines into the strategic waterway.
The Brent Oil Futures price rose by 1.7% to $89.62 per barrel, while West Texas Intermediate (WTI) crude futures gained 1.6% to $84.69 per barrel. The gains were seen in Asian trade on Monday following the US operation on Sunday.
Iran had been observed preparing to launch rockets carrying sea mines into the Strait of Hormuz, a key shipping route that carries approximately one-fifth of global oil supplies. The US official stated that Islamic Revolutionary Guard Corps forces had been identified preparing for the launches.
The escalation in tensions has raised concerns over supply security in the Middle East, where persistent attacks and security risks have already significantly reduced shipping traffic through the Strait of Hormuz.