Oil Prices Soar as US-Iran Conflict Escalates

Oil prices surged more than US$1 per barrel on Monday after the US attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, extending the conflict in the Middle East into its sixth month.

The attack on Iran's Larak island sparked a response from Iran, which hit two US air bases in Jordan, according to Iranian media. The incident has pushed oil prices higher, with Brent crude futures climbing 1.23% to US$89.18 per barrel and WTI crude rising 1.10% to US$84.32 per barrel.

Analysts are warning of further price increases if the conflict escalates, with technical charts indicating that a break above resistance at US$85.80 to US$85.90 per barrel could lead to gains up to last week's high of US$87.69 and even July's high of US$93.50.