Oil Prices Soar as US Strikes Iranian Rocket Launchers

A US strike on Iranian rocket launchers caused oil prices to surge by about 3% on Monday, while Asian shares were mixed. The Strait of Hormuz had been quiet for a month, allowing traders to reduce their 'war premium' in crude oil prices.

Stephen Innes of SPI Asset Management said the attack was a reminder that peace in the region is not the same as quiet. Oil prices rose with Brent crude increasing 2.9% to $90.62 per barrel and US benchmark crude jumping 2.7% to $85.62 per barrel.

Markets in Asia were influenced by a speech from Fed Chairman Kevin Warsh, who emphasized that the US central bank will raise interest rates if necessary to combat inflation. This led to short-term Treasury yields rising with the two-year yield increasing to 4.35% and the 10-year yield climbing to 4.72%.

The S&P 500 futures and Dow Jones Industrial Average fell by 0.1%, while other markets in Asia had varying results, such as Hong Kong's Hang Seng losing 0.1% and the Shanghai Composite index gaining 0.9%. The US dollar also fell to 159.64 Japanese yen from 160.10 yen.