WTI crude oil prices jumped after the U.S. conducted military strikes on Iran's Larak Island in the Strait of Hormuz, and Iran retaliated with attacks on U.S. bases. This direct military exchange, the first in over a month, has intensified fears of a wider conflict that could disrupt the significant volume of oil that transits through the critical Strait of Hormuz waterway. The renewed geopolitical risk premium is the primary driver of the sharp increase in prices.