US-Iran Escalation Sends Oil Prices Soaring

Oil prices surged on Monday as the US-Iran military escalation put the spotlight back on the critical Strait of Hormuz, a major oil shipping route. Brent crude futures jumped by over 2.85% to reach $90.61 per barrel, while US West Texas Intermediate (WTI) rose 2.55% to $85.53.

The latest military strikes between the two nations have sparked fears that the conflict could escalate further, potentially threatening energy supplies and pushing crude prices higher. On Sunday, the US struck two launchers on Iran's Larak Island in the Strait of Hormuz, prompting Tehran to retaliate by striking two US air bases in Jordan.

Analyst Tony Sycamore noted that 'it seems we are in another escalation phase,' warning it could take days or weeks for things to settle down. Technical indicators also suggest a potential for further gains, with WTI potentially breaking above $85.80-$85.90 to reach last week's high of $87.69 and possibly even July's $93.50 level.