Oil rises to above $90 as US and Iran resume strikes

Oil prices surged past the $90 mark on Monday as the United States and Iran resumed strikes, signaling a potential escalation in their ongoing conflict. The benchmark Brent crude climbed 2.24% to $90.07 per barrel, while US crude West Texas Intermediate increased by 1.94% to $85.02 per barrel.

The US carried out strikes on Iranian targets near the strategic Strait of Hormuz, aiming at mines potentially being mined in the area. This marks the first US military action against Iran in a month. Iran retaliated by targeting two US bases in Jordan with eight intercepted missiles.

Adding to the tension, US President Donald Trump posted on social media about Kharg Island, Iran's key oil export facility, being "blown to smithereens." Kharg Island handles approximately 90% of Iran's oil exports, with a daily loading capacity of 7 million barrels and storage capacity of 30 million barrels.

US Treasury Secretary Scott Baessen revealed that secondary sanctions on Iran's trading partners could be applied on a weekly basis, targeting banks and urging them to refrain from aiding the regime. Crude oil prices have been volatile since the onset of the war, peaking at around $126 a barrel in April before settling back due to easing concerns over prolonged supply disruptions.

Shipping through the Strait of Hormuz, which previously accounted for about a fifth of global energy exports, has declined recently due to fears of further hostilities.