US-Iran Conflict Sparks Oil Price Surge

Oil prices surged more than 2% on Monday after the US attacked an Iranian island in the Strait of Hormuz, drawing retaliation from Tehran. The attack marked the sixth month of conflict in the Middle East.

Brent crude futures jumped $1.08, or 1.23%, to $89.18 a barrel, while US West Texas Intermediate (WTI) crude rose by 92 cents, or 1.10%, to $84.32 a barrel. The conflict has caused concern about supply disruption.

Negotiations to end the conflict are at an impasse, but mediators are working to reopen the Strait of Hormuz, through which a fifth of the world's oil flows. Technical charts suggest that if WTI breaks above resistance at $85.80 to $85.90 a barrel, it could lead to further gains.

However, analysts note that increases in oil flows through the Hormuz strait have kept concern over supply disruption in check. The number of visible commodity vessels sailing through the strait has decreased due to caution among companies wary of attacks on ships.