Oil Prices Surge as US-Iran Conflict Enters Sixth Month
Oil prices surged over 2% on Monday as tensions between the US and Iran escalated into its sixth month. The Brent crude futures rose by $2.35, or 2.67%, to $90.45 a barrel at 1306 GMT, while U.S. West Texas Intermediate crude was up $2.31, or 2.77%, to $85.71.
The conflict started with US forces striking two launchers on Iran's Larak Island in the Strait of Hormuz on Sunday, marking the first known American strikes on the country since late July. In response, Iran attacked two U.S. air bases in Jordan, according to Iranian media citing the Revolutionary Guards.
Analysts are focusing on whether the situation will de-escalate or continue to escalate, with markets reacting to concerns of further oil supply disruptions and renewed military strikes in the Middle East. 'Renewed military strikes in the Middle East and concerns of further oil supply disruptions have lifted oil prices,' said UBS analyst Giovanni Staunovo.