Global Oil Prices Surge Following Military Escalation Between US and Iran

Oil prices surged by more than two percent on Monday following a military escalation between the United States and Iran. According to Walla, Brent crude rose by 2.85 percent to $90.61 per barrel, while West Texas Intermediate (WTI) climbed 2.55 percent to $85.53 per barrel. The escalation began when U.S. forces struck two launchers on the Iranian island of Larak in the Strait of Hormuz. In response, the Islamic Revolutionary Guard Corps reported that it had targeted two U.S. Air Force bases in Jordan. Meanwhile, U.S. Treasury Secretary Scott Bessent announced that Washington intends to impose new secondary sanctions on Iran weekly, aiming to completely disconnect the Islamic Republic from the dollar-based international financial system. Shipping data indicates a sharp decline in commercial vessel traffic through the Strait of Hormuz, and the United Kingdom Maritime Trade Operations confirmed that an oil tanker was struck by an unidentified flying object in the strait. Separately, U.S. President Donald Trump announced that oil from a recent deal with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen to near a 44-year low.