Oil Prices Surge on Fresh U.S.-Iran Tensions

Oil prices surged more than 2% on Monday after fresh U.S.-Iran attacks in the Strait of Hormuz. Brent crude rose to $91.20 a barrel, while U.S. West Texas Intermediate gained 3.5% to $86.30 a barrel.

The increase in oil prices drove up energy stocks, with Chevron and Exxon Mobil leading the way. Occidental Petroleum and ConocoPhillips also saw significant gains, rising by 1.8% and 1.3%, respectively. Halliburton climbed 2.5%, while SLB rose 1.7%. Refiners Marathon Petroleum and Phillips 66 participated in the rally, gaining 0.6% and 1%.

The U.S.-Iran conflict remains ongoing, with international mediators working to reopen the Strait of Hormuz. The strait is a critical chokepoint that carries roughly one-fifth of global oil supply. U.S. Treasury Secretary Scott Bessent stated that Washington plans to roll out new secondary sanctions against Iran on a weekly basis going forward.