Tensions Rise: US-Iran Strikes Send Oil Prices Soaring
Oil prices surged on Monday as tensions between the U.S. and Iran escalated following a series of strikes. The U.S. struck Iranian rocket launchers on Larak Island, which sits inside the Strait of Hormuz, after observing that the IRGC was preparing to launch rockets with sea mines into the strait.
The attack came after President Trump claimed that the U.S. had finished clearing mines from the Strait and warned that any ship or boat placing new mines would be 'immediately and systematically destroyed.'
Iran responded by launching ballistic missiles and drones at U.S. military installations in Jordan, which were intercepted and destroyed by Jordanian air defenses.
The latest attacks have raised concerns about oil flows through the Strait, with visible commodity-vessel traffic dropping to around five ships per day over the weekend.
As of Monday morning, WTI front-month futures had climbed 2.47% to $85.46 per barrel, while Brent front-month futures had risen 2.71% to $90.49 per barrel.