Oil Prices Soar as Middle East Violence Escalates

Oil prices surged to $92.35 per barrel after a 2% jump, while shares worldwide declined as violence in the Iran war intensified.

The Brent crude price increase comes after a U.S. attack on rocket launchers on an Iranian island last Sunday, which was followed by Iranian missile launches at U.S. sites in Jordan.

The Strait of Hormuz, which accounts for about 20% of the world's oil shipments, has seen traffic curtailed due to the conflict.

U.S. benchmark crude climbed 2.5% to $87.84 per barrel, and energy stocks like Exxon Mobil rose 2.7%, while Chevron increased by 2.1%.

The heightened oil prices have fueled already high inflation, with the Federal Reserve's 2% target being surpassed, making interest rate policy a complex issue for the Fed.

U.S. futures were 0.1% higher, and the S&P 500 index fell 0.3%, while the Dow Jones Industrial Average dropped 0.7% and the Nasdaq composite slipped 0.1% on Monday.