US Strike on Iran Sends Oil Prices Soaring

Oil prices surged on Monday after the United States struck Iranian launchers on Larak Island in the Strait of Hormuz, prompting Tehran to retaliate against U.S. military targets in Jordan.

Brent crude futures rose 2.3% to $90.15 a barrel, while U.S. West Texas Intermediate crude gained 2% to $85 a barrel, as investors assessed the risk of a broader escalation in the Middle East and potential disruption to oil supplies through the waterway.

The Strait of Hormuz is a strategically important waterway that accounts for about one-fifth of the world's oil passing through it. The prospect of prolonged disruption to shipping remains the biggest risk for crude prices, analysts warn.