Oil Prices Surge as US-Iran Tensions Escalate in Strait of Hormuz
Global oil prices surged over 2% on Monday after the United States launched strikes on Iran's Larak Island in the Strait of Hormuz, sparking fresh retaliation from Tehran and fueling concerns about crude supplies.
The conflict has raised alarm bells for the safety of commercial shipping through the Strait, a crucial global energy route that previously carried around one-fifth of the world's oil. A tanker was hit by a projectile while traveling inbound through the Strait on Saturday, according to reports from the United Kingdom Maritime Trade Operations.
Brent crude futures rose $2.51, or 2.85%, to reach $90.61 per barrel, while US West Texas Intermediate (WTI) gained $2.13, or 2.55%, to hit $85.53 a barrel. Market analysts warned that the renewed confrontation could push crude prices higher if tensions continue to escalate.
US Treasury Secretary Scott Bessent said Washington was likely to impose additional secondary sanctions on Iran on a weekly basis, aiming to further restrict Tehran's access to the dollar-based financial system.