US-Iran Tensions Send Oil Prices Soaring Over $2

Oil prices surged more than $2 on Monday due to escalating tensions between the US and Iran, reigniting concerns about global crude supply. The Brent crude futures price rose by $2.35, or 2.65%, to settle at $90.87 a barrel, while U.S. West Texas Intermediate crude climbed by $2.10, or 2.55%, to $84.50 a barrel.

President Donald Trump's demand for Iran's surrender and threat to bomb Oman, the Gulf state mediating between Washington and Tehran, sparked the price increase. A senior Iranian official vowed to escalate tensions in the Strait of Hormuz if the US fails to implement an interim peace deal within weeks.

Analysts caution that prices are unlikely to move substantially higher unless there is a complete halt in crude flows through the Strait or a closure of the Bab el-Mandeb Strait. Despite Monday's rally, some market watchers predict oil prices will stay within a $70 to $100 range for the remainder of the year.