Oil Prices Surge as US-Iran Conflict Escalates

Oil prices surged over 2% on Monday after a US attack on Iran's Larak island in the Strait of Hormuz, as their conflict enters its sixth month. The assault by US forces on two launchers on the island drew retaliation from Tehran, with Iranian media reporting that they attacked two US air bases in Jordan.

The price of Brent crude oil jumped $2.21 to $90.31 a barrel, while WTI rose $1.83 to $85.23 per barrel. The Strait of Hormuz is a critical waterway for global energy supplies, with over 20% of the world's oil passing through it.

Negotiations to end the conflict are at an impasse, with mediators working to reopen the strait. Suvro Sarkar, head of energy research at DBS, expects oil prices to remain rangebound in the $85-95 per barrel range unless more clarity emerges on the situation.