US-Iran Conflict Ignites Oil Price Surge Amid Middle East Tensions

Oil prices surged over 2% on Monday after a fresh escalation in tensions between the US and Iran. The conflict reignited when the US attacked an Iranian island in the Strait of Hormuz, prompting Tehran to retaliate by hitting two US air bases in Jordan.

The attack marked the first known US strike on Iran since late July, with Brent crude gaining $1.86 (2.11%) to reach $89.96 a barrel and WTI crude rising $1.60 (1.92%) to $85.00 a barrel.

Global benchmarks fell over 4% last week, their first weekly decline in three weeks, following the intense conflict in the Middle East.

The Strait of Hormuz remains a critical concern as it is responsible for transporting about a fifth of the world's oil supply. The UK Maritime Trade Operations reported that a tanker was hit by a projectile while sailing through the strait on Saturday.