Oil Prices Surge as US-Iran Tensions Escalate in Strait of Hormuz

Oil prices surged on Monday as tensions between the US and Iran escalated in the Strait of Hormuz, a crucial shipping route. The price hike was driven by concerns over potential supply disruptions from the Middle East.

Brent crude futures rose to $96.80 a barrel, up 0.54% or 52 cents, while US West Texas Intermediate (WTI) crude climbed to $92.14 a barrel, a gain of 0.72% or 66 cents.

The price increase follows last week's 7.8% jump in Brent and nearly 10% rise in WTI after the US and Iran resumed attacks on oil tankers in the region.

The latest incident saw US forces striking three Iranian oil tankers, including one off the coast of Kharg Island near Iran's key oil export hub.