US-Iran Tensions Send Oil Prices Soaring 3.5%
Oil prices surged over 3% on Monday following renewed US-Iran military action in the Strait of Hormuz, fueling concerns about oil supplies and shipping disruptions.
The Brent crude futures price jumped $3.15 to $91.25 a barrel at 0903 GMT, while US West Texas Intermediate (WTI) crude rose $2.96 to $86.36.
The renewed hostilities began with the US striking two launchers on Iran's Larak Island in the Strait of Hormuz on Sunday, prompting Tehran to retaliate by attacking two US air bases in Jordan, according to Iranian media reports.
UBS analyst Giovanni Staunovo noted that markets were assessing the impact of renewed hostilities on oil flows and prospects for reopening the Strait of Hormuz. He said, 'Renewed military strikes in the Middle East and concerns of further oil supply disruptions have lifted oil prices.'
The number of visible commodity vessels transiting the strait fell to five a day over the weekend, highlighting caution among operators concerned about attacks on shipping.