US-Iran Conflict Ignites Oil Price Spike

Oil prices surged over 2% on Monday after a fresh outbreak of violence in the Middle East. The US struck an Iranian island in the Strait of Hormuz, prompting Tehran to retaliate with attacks on two US air bases in Jordan.

The conflict escalated as global benchmarks had fallen more than 4% last week, their first weekly decline in three weeks. Brent crude rose $1.86, or 2.11%, to $89.96 a barrel, while WTI crude increased by $1.60, or 1.92%, to $85.00 a barrel.

The US military strike on Iran's Larak island marked the first known US action against Iran since late July. The Iranian Revolutionary Guard responded with missile attacks on the US bases in Jordan, which were intercepted by the country's armed forces.