Oil Prices Surge Over 2% as US-Iran Direct Conflict Resumes After Month-Long Hiatus
Oil prices surged over 2% on Monday, driven by renewed tensions in the Middle East. Brent crude rose by $1.86, or 2.11%, reaching $89.96 per barrel, while WTI crude increased by $1.60, or 1.92%, to $85.00 per barrel. This uptick follows a significant decline of more than 4% in global benchmarks last week, marking their first weekly drop in three weeks.
The rise in oil prices coincides with escalating conflict in the region. The U.S. military conducted strikes on two launchers located on Iran’s Larak island in the Strait of Hormuz on Sunday, marking the first known U.S. attack on Iran since late July. In retaliation, Iran targeted two U.S. air bases in Jordan, as reported by local media citing the Revolutionary Guards. Iranian state television broadcast footage of ballistic missiles being launched at these bases.
Jordan’s armed forces confirmed they intercepted eight missiles entering their airspace early Monday. The ongoing conflict has now entered its sixth month, with negotiations to resolve the situation at a standstill. Efforts are underway to reopen the strategically vital Strait of Hormuz, through which a fifth of the world’s oil was transported before the outbreak of hostilities in February. Shipping data indicated a decline in the number of visible commodity vessels traversing the strait, with only five vessels reported over the weekend, reflecting heightened caution among shipping companies.
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