Oil prices spiked as the United States and Iran exchanged fresh strikes over the weekend, bringing renewed tensions to the center stage in the Middle East.
Brent crude futures climbed to $78.68 a barrel, with prices rising above prewar levels. This movement demonstrates Iran's capacity to influence energy prices by projecting power in the Strait of Hormuz. Meanwhile, US equity futures fell following the latest round of strikes.
The renewed hostilities have posed fresh risks to ships seeking to navigate the Strait of Hormuz. The U.S. and Iran have disputed whether the strait remains open to shipping traffic, offering conflicting statements on its status.
Traders are weighing these latest events in the Middle East as they brace for a slew of corporate earnings reports due out later in the week.