Global oil prices surged over two percent after American military forces struck Iranian missile launchers on Larak Island in the Strait of Hormuz on Sunday evening.
Brent crude futures climbed 2.52 percent to reach $90.32 per barrel, crossing the $90 threshold once again as energy markets reacted to the escalation between the United States and Iran.
United States West Texas Intermediate crude also gained ground, rising 2.41 percent to reach $85.41 per barrel.
Strait of Hormuz military strikes
The sudden price increase followed a US military strike on Sunday night targeting two Iranian launchers situated on Larak Island, a strategic location within the Strait of Hormuz. News outlet Axios reported that American forces carried out the attack against the Iranian missile installations.
Iranian officials responded with threats, warning that the United States would pay for the attack on Larak Island, which resulted in deaths and injuries.
The strike was part of broader regional military action in which the United States bombed targets on Larak Island while Iranian forces launched retaliatory strikes against military bases in Jordan and the United Arab Emirates.
Global energy navigation concerns
Renewed military operations have intensified market anxieties regarding navigation safety through the Strait of Hormuz and heightened concerns over potential disruptions to maritime oil transport.
The Strait of Hormuz is a narrow sea passage separating Iran from the Arabian Peninsula, connecting the Persian Gulf with the Gulf of Oman. As one of the world's most critical energy chokepoints, approximately a fifth of global petroleum supplies passes through the waterway to reach international markets.
Brent crude serves as the primary international pricing benchmark for oil produced in the Atlantic basin, while West Texas Intermediate acts as the main benchmark for United States domestic crude. Any operational threat to tanker traffic in the Gulf immediately drives volatility in both benchmark contracts.
Economic sanctions and market outlook
Alongside the military strikes, the United States is moving to tighten its economic pressure on Tehran. US official Scott Bessent announced that Washington plans to introduce new sanctions against Iran on a weekly basis.
Investors remain focused on developments across the region, where any further military escalation in the Strait of Hormuz threatens to impact global crude oil supplies and keep energy prices elevated.
