Oil prices rise after US attack on Iran's Larak Island

Oil prices were trading more than two and a half percent higher on Tuesday after the United States attacked Iran's Larak Island in the Strait of Hormuz, drawing retaliation from Tehran, as their conflict extended into its sixth month.

Brent crude futures climbed $2.21, or 2.51 percent, to $90.31 a barrel as of 04:36 GMT, while US West Texas Intermediate crude was at $85.23, up $1.83, or 2.19 percent, according to Al Jazeera.

The attack on Larak Island, a key Iranian oil terminal in the strategic Strait of Hormuz, marks a significant escalation in the ongoing tensions between the two countries. The strait is a vital waterway through which about a fifth of the world's oil passes, making any disruption a major concern for global energy markets.

Iran has vowed to retaliate against the US attack, and there are concerns that further escalation could lead to supply disruptions in the region. The conflict, which has now lasted for six months, has already had a significant impact on oil prices, with volatility expected to continue as long as the situation remains unresolved.

According to Al Jazeera, the price increases reflect market fears of potential supply shortages due to the heightened geopolitical risks in the region. Analysts are closely monitoring the situation, as any further attacks on oil infrastructure could push prices even higher.

The report by Al Jazeera added that the US attack on Larak Island is part of a broader military campaign against Iranian targets, which has drawn international concern. The international community has called for restraint, but so far, both sides have shown no signs of backing down.