Oil prices surged Monday after the United States launched strikes against Iranian targets over the weekend.
Brent crude, the international benchmark, rose 2.1% to $76.30 per barrel. West Texas Intermediate, the U.S. benchmark, climbed 2.3% to $72.85 per barrel. The strikes targeted Iranian military facilities in response to recent attacks on American forces in the region. Markets are now pricing in the risk of further escalation that could disrupt oil supplies from the Persian Gulf, through which roughly a fifth of global oil passes daily.
Energy analysts say sustained prices above $75 could pressure the Federal Reserve’s inflation fight and complicate the Biden administration’s economic messaging ahead of the 2024 election.