Oil Prices Spike as US and Iran Engage in Retaliatory Strikes

Oil prices surged in early Asian trade on Monday after the US struck Iran for the first time in over a month, prompting a retaliatory attack from Iranian forces. The WTI front-month futures climbed to $85.46 per barrel, up 2.47%, while Brent front-month futures rose 2.71% to $90.49 per barrel.

The US Central Command (CENTCOM) spokesperson stated that the US struck two Iranian rocket launchers on Larak Island after observing them preparing to launch rockets with sea mines into the Strait of Hormuz. This action came despite President Trump's claim last week that the US had finished clearing mines from the Strait and warned any ship or boat placing new mines would be 'immediately and systematically destroyed'.

Iran responded by launching ballistic missiles and drones at two US military installations in Jordan, which its air defenses intercepted and destroyed. The IRGC warned it will 'forcefully respond' to every new US strike.

The oil market remains uncertain about the escalation of tensions between the US and Iran, with prices still well below levels seen during earlier periods of conflict. Despite a 2% gain in early trading, both benchmarks fell more than 4% last week.