US Strike on Iran's Larak Island Sends Oil Prices Soaring

Global oil prices surged more than 2% on Monday following a US military strike on Iranian launchers on Larak island in the Strait of Hormuz. The attack marked the first known American strikes on Iran since late July.

Brent crude futures jumped $2.22, or 2.52%, to reach $90.32 per barrel by 2202 GMT, while US West Texas Intermediate crude rose to $85.41 a barrel, up $2.01, or 2.41%.

The increase in oil prices is attributed to the heightened tensions between the US and Iran, which have been escalating over the past few months. The Strait of Hormuz is a critical waterway for global oil trade, with nearly 20% of the world's crude passing through it.