Oil jumps more than 3% after US strike on Iran's Larak Island
Why it matters: Traffic through the Strait of Hormuz has dropped to about five visible commodity vessels a day, deepening supply fears.
Oil rose more than 3% on Monday after U.S. forces hit two Iranian launchers on Larak Island in the Strait of Hormuz, sharpening fears of wider disruption to crude flows from the Gulf. Brent crude gained $2.87 to $90.97 a barrel, while U.S. West Texas Intermediate climbed $2.91 to $86.31. Shipping data cited by Reuters showed visible commodity traffic through the strait fell over the weekend to about five vessels a day. The United Kingdom Maritime Trade Operations agency also reported that a tanker was hit by a projectile while entering the waterway on Saturday. Analysts said the market is now focused on whether the latest military action escalates and further constrains oil transit through one of the world's most important shipping chokepoints.