US Strikes on Larak Island Send Oil Prices Soaring Above $90

The recent escalation of tensions between the US, Israel, and Iran has sent oil prices soaring. On Sunday, the US struck Iranian military positions on Larak Island near the Strait of Hormuz, causing Brent crude to jump more than 2%.

The US military claimed that the operation targeted positions linked to preparations for deploying sea mines in the Strait of Hormuz. Iran responded by attacking US bases in Jordan, according to Iranian media citing the Revolutionary Guards.

The conflict has already reduced tanker traffic through the Strait of Hormuz, with only around five notable cargo vessels passing through per day. Shipping companies are exercising caution, and any further military action or attacks on vessels could make shipping even more difficult and push crude prices higher.