US strikes on Larak Island spark Iran retaliation, lifting oil prices above $90

Early Sunday, US Central Command announced that naval forces struck two Iranian launchers on Larak Island, where Islamic Revolutionary Guard Corps units were allegedly readying sea-mine rockets for the Strait of Hormuz. Iran retaliated with a missile barrage targeting US forces stationed in Jordan, which was largely neutralised. The confrontation drove Brent crude futures up 2.20% to $90.29 a barrel and West Texas Intermediate to $85.65, with national gasoline prices remaining above $4 per gallon.

Gulf oil shipments have rebounded to 15-16 million barrels daily, though still below pre-war levels, according to analysts. The IRGC reported casualties from the US strike and vowed further retaliation. Meanwhile, the US strategic petroleum reserve has slipped below 300 million barrels, raising concerns about supply resilience.