Oil prices rose by more than 2% on Monday after the United States attacked an Iranian island in the Strait of Hormuz and Tehran said it had carried out a retaliatory strike, as the conflict enters its sixth month, UNN writes, citing Reuters.
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Brent crude futures rose by $2.35, or 2.67%, to $90.45 a barrel by 13:06 GMT (16:06 Kyiv time), while U.S. West Texas Intermediate crude rose by $2.31, or 2.77%, to $85.71. The price of Brent crude had risen earlier that day to $91.52, its highest level since August 25.
On Sunday, U.S. forces struck two launchers on Iran's Larak Island in the Strait of Hormuz, the first known U.S. strikes on the country since late July. In response, Iran attacked two U.S. air bases in Jordan, Iranian media reported on Monday, citing the Islamic Revolutionary Guard Corps.
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"The resumption of military strikes in the Middle East and concerns about further disruptions to oil supplies have driven oil prices higher," said UBS analyst Giovanni Staunovo, adding that markets will focus on whether or not the situation will de-escalate.
U.S. President Donald Trump said on social media on Sunday that Iran's energy hub on Kharg Island had been "blown to smithereens," but there was no evidence of an attack on the island. The post, which included an AI-generated video, provided no additional details. Iran denied any strike on the island and said oil production operations were continuing.
Attempts to reach an agreement to end the conflict remain deadlocked, as mediators seek to reopen the Strait of Hormuz, through which one-fifth of the world's oil supplies passed before the war began in late February.
The market's strong reaction on Monday was partly due to low trading volumes because of a public holiday in Britain, said Saxo Bank analyst Ole Hansen.
Shipping data showed that the number of visible vessels carrying commodities passing through the strait over the weekend fell to five per day, underscoring the caution of operators concerned about attacks on vessels.
The UK's Maritime Trade Operations agency said on Sunday that a tanker was struck by a projectile while entering the strait on Saturday.
U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that the United States was likely to impose new secondary sanctions on Iran every week.
Despite Monday's rise, Brent and WTI oil prices are still likely to post small losses in August after falling more than 4% last week, their first weekly decline in three weeks.
Trump also said on Sunday that oil purchased under the agreement with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which had fallen close to its lowest level in 44 years.