US-Iran Tensions Spark Oil Price Surge

Oil prices surged on Monday as tensions between the US and Iran escalated. WTI crude jumped over 3% to around $86.27 per barrel, while Brent crude rose by almost 2.5% to approximately $91.25 per barrel.

The sharp increase in oil prices follows a weekend of military strikes and retaliation between the two nations. On Sunday, US forces struck Iranian missile launchers on Larak Island in the Strait of Hormuz, with Iran retaliating against US bases in Jordan.

UBS analyst Giovanni Staunovo told Reuters that renewed military strikes and concerns over further oil supply disruption were driving up crude prices. The market is now watching closely for either escalation or de-escalation.

The Strait of Hormuz remains a key market risk, with only about five visible commodity vessels crossing the waterway per day over the weekend. A tanker was reportedly struck by a projectile while entering the strait on Saturday.