Oil prices jump as US-Iran conflict escalates in Strait of Hormuz
Oil prices have risen by more than 2% after US forces struck Iranian military targets on Larak Island in the Strait of Hormuz, prompting a retaliatory attack from Tehran.
Brent crude climbed to around $90 a barrel on Monday, while US West Texas Intermediate rose to around $85, as renewed fighting raised concerns over disruption to global oil supplies.
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The latest escalation began on Sunday when US forces struck two Iranian launchers on Larak Island, located inside the Strait of Hormuz.
It was the first known US strike on Iran since late July. US Central Command described the operation as a limited strike against Iranian forces it said were preparing to deploy mines in the strategically important waterway.
Iran responds with strikes on US bases
Iran subsequently launched attacks targeting two US military bases in Jordan, according to the country's Revolutionary Guards.
Jordan's armed forces said its air defences intercepted eight missiles after they entered Jordanian airspace early on Monday.
The exchange marks a renewed escalation in the conflict after more than a month without direct US strikes on Iran, with fighting now entering its sixth month.
Concerns over Strait of Hormuz
The renewed tensions have brought attention back to the Strait of Hormuz, one of the world's most important routes for energy supplies.
Before the conflict began, around a fifth of global oil passed through the waterway.
Shipping activity remains significantly below pre-war levels, with visible commodity vessel traffic reportedly falling to around five ships a day over the weekend.
Concerns were heightened further after the UK Maritime Trade Operations reported that a tanker travelling through the strait was struck by a projectile on Saturday.
The latest developments come as efforts to end the conflict remain stalled and mediators continue working towards reopening the Strait of Hormuz more fully.
Oil markets are now watching closely for further escalation and any additional disruption to shipping, with Brent crude returning to around $90 a barrel on Monday.