Oil Prices Surge as US Strikes Iranian Rocket Launchers

The US military launched its first strike in a month against Iran on Sunday, targeting Iranian rocket launchers on the Strait of Hormuz. This move follows a lull in activity in the ongoing war with Iran, which has lasted over six months.

As a result of the conflict, oil prices surged, with Brent crude rising 3.2% to $90.91 per barrel on Monday. The price swing between $72 and $102 last month was due to fluctuating hopes for a deal to end the war.

The high energy prices have contributed to already stubbornly high inflation, which remains above 3%. This has been weighing on household spending and consumer confidence, making the Federal Reserve's interest rate policy more complicated.