Oil jumps more than 2% after US attack on Iran's Larak Island

Business Recorder reported that Brent crude futures gained $2.21, or 2.51 per cent, to $90.31 a barrel by 0436 GMT on Monday, while West Texas Intermediate rose $1.83 to $85.23. The move followed US forces hitting two launchers on Larak Island, an Iranian island in the Strait of Hormuz, on Sunday. It was the first known American strike on Iran since late July.

Iran retaliated against a pair of American airfields in Jordan, according to Iranian media citing the Revolutionary Guards. Trump posted on social media on Sunday that Kharg Island, Iran's energy hub, was being wrecked, but there was no sign the island had been attacked. His brief post, which carried an AI-generated clip, gave no further details.

Talks to end the conflict have reached an impasse while mediators try to reopen the strait, which carried a fifth of global oil before fighting began in late February. Suvro Sarkar, DBS head of energy research, said repeated flare-ups keep delaying the reopening timeline and expects prices to stay within an $85-95 per barrel range unless the strait situation becomes clearer. Visible commodity ship traffic through the waterway fell to five a day over the weekend, according to shipping data.