Oil Prices Surge Above $90 Amid US-Iran Tensions

On Monday, oil prices increased by more than two percent as military tensions between the United States and Iran escalated, raising fears of disruptions to global crude supplies. Brent crude futures rose by $2.37, or 2.69%, to $90.47 a barrel, while US West Texas Intermediate crude gained $2, or 2.4%, to $85.40 a barrel.

Brent previously peaked at $91.52 a barrel, the highest since August 25. The surge followed US military strikes on two Iranian launchers on Larak Island in the Strait of Hormuz, marking the first US attacks on Iran since late July.

In retaliation, Iran reportedly attacked two US air bases in Jordan. The renewed conflict has heightened concerns regarding the security of the Strait of Hormuz, a crucial oil shipping route.

Mediators are attempting to negotiate an agreement to reopen the strait, through which about one-fifth of global oil supplies passed before the conflict began. However, negotiations have stalled amid ongoing hostilities.

US Treasury Secretary Scott Bessent stated that sanctions on Iran aim to pressure Tehran into negotiations.