AM Markets Need to Know: Venezuela oil, Iran tensions, and more

Oil prices skyrocketed on Monday, with the West Texas Intermediate (WTI) benchmark reaching $85.50 per barrel, a 3% increase from the day's start and nearing a one-month high of $87.38. Tensions in Iran reignited, disrupting oil flows through the Strait of Hormuz and sparking fears of a global oil shortage. The US military targeted the Iranian island of Larak, where the Islamic Revolutionary Guard Corps (IRGC) was allegedly preparing to place sea mines in the Strait.

Iran retaliated by attacking US bases in Jordan and the UAE. Iranian President Masoud Pezeshkian stated that Tehran is not seeking war but will not stand idly by in the face of US aggression. Analysts warn that this marks the first US strike on Iranian forces in over a month and highlights the risk of renewed escalation. WTI Oil, a high-quality crude, is traded on international markets and is a benchmark for the oil market, with its price influenced by supply and demand, geopolitical instability, OPEC decisions, and the value of the US Dollar.