Brent crude: Brent crude futures jumped more than 5.5% to near $115 per barrel on Monday after Iranian media reported that missiles struck a US Navy vessel near Jask Island, sharply escalating security concerns around the Strait of Hormuz. After nearing $115 a barrel, prices stood at around $114 as of 1025GMT.

According to Anadolu Agency, the rally followed reports from Iran's semi-official Fars news agency claiming two missiles hit a US Navy vessel near Jask after it ignored warnings from the Islamic Revolutionary Guard Corps to halt. Iran's navy also said it had prevented US warships from entering the Strait of Hormuz area, further heightening fears of a broader military escalation around the key energy chokepoint.

The developments deepened concerns over potential disruptions to commercial shipping and energy flows through the strait, a critical transit route for crude oil, refined products, and liquefied natural gas from Gulf producers. Market volatility has increased in recent sessions as traders factor in rising war-risk premiums, possible shipping delays, and tighter seaborne energy supplies.

The escalation follows earlier Iranian warnings that any US forces approaching or entering the Strait of Hormuz without coordination would be targeted. US President Donald Trump had previously announced a naval initiative, dubbed Project Freedom, aimed at escorting civilian vessels through the passage.

Despite the heightened tensions, Tehran has said it is reviewing Washington's latest 14-point proposal, leaving room for a possible diplomatic track. Oil markets, however, remain focused on immediate security risks after the reported strike near Jask.