Oil prices are posting strong gains of more than 2%, with Brent crude once again surpassing $90 a barrel as markets react to the latest escalation in tensions between the United States and Iran following a U.S. strike on two Iranian launchers on Larak Island, in the Strait of Hormuz.

Brent futures were up 2.52%, reaching $90.32 a barrel.

U.S. crude West Texas Intermediate (WTI) also moved higher, gaining 2.41% to reach $85.41 a barrel.

The rise followed a U.S. attack on Sunday night targeting two Iranian launchers on Larak Island, located along the strategically important maritime passage.

Concerns over shipping in the Strait of Hormuz

The renewed military escalation has heightened market concerns about the safety of shipping through the Strait of Hormuz and the risk of further disruptions to oil flows.

The waterway is one of the world’s most important energy corridors, carrying a significant share of the oil supplied to international markets.

Developments in the region are therefore once again at the center of investors’ attention, as any further escalation in the Strait of Hormuz could affect both global oil supply and energy prices.