Oil Prices Soar on US-Iran Military Escalation
Oil prices surged more than 3% on Monday morning, following renewed military action between the United States and Iran. The sharp increase in crude prices comes after US forces struck Iranian missile launchers on Larak Island in the Strait of Hormuz, prompting a retaliatory attack by Iran on US air bases in Jordan.
The market's response to the escalation is significant, with Brent crude trading at around $91.25 per barrel and WTI crude at approximately $86.27 per barrel. This marks a reversal from last week's decline, when oil prices fell due to expectations of diplomatic efforts reopening the Hormuz shipping corridor.
UBS analyst Giovanni Staunovo told Reuters that renewed military strikes and concern over further oil-supply disruption are driving the increase in crude prices. The market is now closely watching for either escalation or de-escalation, which could impact global supply chains.