US-Iran Conflict Sends Oil Prices Soaring

Oil prices surged more than $1 per barrel on Monday as tensions between the US and Iran escalated in the Strait of Hormuz, a key oil shipping route. The conflict has heightened concerns over global energy supplies, with traders pricing in the risk of supply disruptions.

The crisis began after US forces struck Iranian missile launchers on Larak Island, prompting Tehran to retaliate with military action. The Strait of Hormuz carries approximately 20% of the world's daily oil consumption, making it a crucial chokepoint for global energy markets.

Shipping companies have reduced vessel movements through the strait as security risks increase, while insurers are reassessing premiums for tankers operating in the Gulf. The incident has also raised fears of a wider regional conflict that could disrupt commercial shipping and push crude prices even higher.