Oil Prices Soar as Middle East Tensions Flare Again

Oil prices surged on Monday as tensions in the Middle East escalated following a US strike on Iranian targets. The Strait of Hormuz, a vital shipping route for global oil consumption, is once again at the center of the conflict.

The US forces carried out their first strike on Iranian targets in weeks, hitting two launchers on Larak Island in the strait. This move has added to the already strong gains in oil prices this year, with both US crude and Brent crude up around 48% in 2023.

US President Donald Trump warned last week that mines had been cleared or removed from international waters in the strait, but also threatened to destroy any ships or boats laying new mines. The Strait of Hormuz remains a major concern for oil markets, with around one-fifth of global oil consumption passing through it.