Oil prices surge more than 2% following US attack on two Iranian missile launch sites on Larak Island
Oil prices rose more than 2% on Monday as the conflict entered its sixth month following a US attack on an Iranian island in the Strait of Hormuz and the Iranian Revolutionary Guard's announcement that it had attacked two US air bases in Jordan.
Brent crude futures rose $2.21, or 2.51%, to $90.31 a barrel as of 04:36 GMT, while WTI crude traded $1.83, or 2.19%, at $85.23.
The US forces' attack on two Iranian missile launch sites on Larak Island in the Strait of Hormuz on Sunday was the first known American attack on the country since late July.
Iran responded by attacking two US air bases in Jordan.
Trump, in a brief social media post on Sunday, claimed that Iran's energy hub, Harg Island, had been "razed to the ground," but there was no evidence that the island was under attack, and the post, accompanied by an AI-generated video, offered no further details.
Negotiations to end the conflict are stalled. Mediators continue to work to reopen the Strait of Hormuz, through which a fifth of the world's oil flowed before the war began in late February.
From now on, a limited conflict, rather than a sustained escalation, seems more likely.
Unless more clarity emerges regarding the situation in the Strait of Hormuz, oil prices are likely to remain in the $85-95 per barrel range.
Shipping data released Monday showed that the number of visible commodity ships passing through the Strait over the weekend dropped to five per day, reflecting caution among companies concerned about attacks on ships.
U.S. Treasury Secretary Scott Bessent said on Sunday that the U.S. is likely to impose new secondary sanctions on Iran every week.
On Sunday, Trump said the U.S. would use Venezuelan oil to replenish its Strategic Petroleum Reserves (SPR).
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