Oil prices jump over 2% after US strikes Iran's Larak Island in Strait of Hormuz

WASHINGTON, United States — Oil prices climbed more than 2% on Monday after US forces struck Iran's Larak Island in the Strait of Hormuz, according to Reuters. A US official said two ballistic missile launchers belonging to Iran's Revolutionary Guard Corps (IRGC) were hit on the island on Sunday. The strike targeted one of the most strategically positioned points along the world's most critical oil shipping lane. Roughly a fifth of global oil trade transits the Strait of Hormuz, making any disruption to the corridor a significant concern for energy markets. Iran's IRGC said on Sunday it would respond to the attack. Benchmark Brent crude rose more than 2% in early trading, reflecting renewed anxiety over supply security in the region. Traders cited the potential for escalation near a key chokepoint as the main driver behind the price jump. Iran has not confirmed damage to the missile launchers or offered a full account of the strike. The escalation comes amid heightened tensions between Washington and Tehran over Iran's nuclear program and its support for armed groups in the region. No further details on casualties or damage assessments were immediately available. Energy ministers and market analysts were monitoring developments closely, with several warning that any sustained disruption to shipping through the Strait of Hormuz could trigger a broader supply crisis.