Oil Prices Soar as US Strikes Iranian Island Amid Escalating Conflict

Oil prices surged on Monday after the US struck an Iranian island in the Strait of Hormuz, prompting Tehran to retaliate with missile strikes on US bases in Jordan. The escalation marked a sharp increase in tensions since July and pushed Brent crude above $90 a barrel.

The US Central Command said Islamic Revolutionary Guard Corps personnel were preparing to launch rockets with sea mines into the Strait of Hormuz, prompting the operation. Iranian media reported that several soldiers were killed or wounded in the attack, after which the Guards launched missiles at two American air bases in Jordan.

Despite the danger, traders estimate that 6 million to 8 million barrels of crude still move through the waterway daily. Analysts note that while a deal to reopen the strait remains elusive, ongoing flows have helped keep supply-disruption fears in check.