Oil Prices Soar Amid Escalating Tensions Between US and Iran
Oil prices rose sharply on Monday after the US attacked an Iranian island in the Strait of Hormuz, leading to renewed military strikes in the Middle East. Brent crude futures were up $3.15, or 3.58 percent, to $91.25 a barrel at 0903 GMT, while US West Texas Intermediate crude was up $2.96, or 3.55 percent, to $86.36.
The conflict between the two countries has now extended into its sixth month, with efforts to negotiate an end remaining stalled. The US attacked two launchers on Iran's Larak Island in the Strait of Hormuz on Sunday, prompting Iran to retaliate by attacking two US air bases in Jordan, according to Iranian media.
UBS analyst Giovanni Staunovo said that renewed military strikes and concerns over oil supply disruptions have lifted oil prices. Markets will now focus on whether the situation de-escalates or not.