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Oil prices jumped more than 2% on Monday, August 31, after fresh US-Iran strikes revived supply fears around the Strait of Hormuz. Brent crude climbed $1.86, or 2.11%, to $89.96 a barrel, while WTI crude gained $1.60, or 1.92%, to $85.
The rise followed US attacks on two Iranian launchers on Larak Island inside the Strait of Hormuz. Iran then targeted two US air bases in Jordan, according to Revolutionary Guard claims reported by local media.
The renewed US-Iran conflict pushed crude higher as traders feared another disruption near the key shipping route. The latest exchange marked the first known US strike on Iran since late July and extended the conflict into its sixth month. Jordanian forces said they intercepted eight missiles entering the country early Monday, adding to regional security concerns.
The Strait of Hormuz remained the main focus for energy markets. Around one-fifth of global oil shipments had moved through the waterway before the war began. Shipping data showed visible commodity vessels fell to about five daily over the weekend. A tanker also suffered a projectile strike while sailing through the strait on Saturday.
The supply risk emerged after global oil benchmarks dropped more than 4% last week. The decline marked their first weekly loss in three weeks. Monday’s rebound therefore erased part of the recent fall as geopolitical risks returned.
Iranian Revolutionary Guard spokesperson Gen. Hossein Mohebi called the US strike a “fatal mistake by the Trump regime during the economic war.” He added that the enemy would face military and economic consequences.
Talks aimed at ending the conflict remained stalled, while mediators worked to reopen the Strait of Hormuz. Rising crude prices also pressured the Indian rupee, which opened at 95.56 against the US dollar.
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