- US forces struck two Iranian launchers on Larak.
- IRGC says it attacked two US air bases in Jordan.
- US says it will use Venezuelan oil to replenish SPR.
Oil prices jumped more than $1 a barrel on Monday after US forces struck an Iranian island in the Strait of Hormuz and Tehran retaliated, as the Middle East conflict entered its sixth month and fresh fighting raised concerns over crude supplies and shipping through the strategic waterway.
Brent crude futures climbed $1.08, or 1.23%, to $89.18 a barrel at 0040 GMT, while US West Texas Intermediate crude rose 92 cents, or 1.10%, to $84.32.
US forces struck two Iranian launchers on Larak Island in the Strait of Hormuz on Sunday, the first known American strikes on Iran since late July. A US official said the launchers were being prepared to fire rockets carrying sea mines into the waterway.
Iran responded by attacking two US air bases in Jordan, Iranian media reported on Monday, citing the Islamic Revolutionary Guard Corps.
“Looks like we are in another escalation phase. How long that lasts is impossible to determine. Could be days, could be weeks,” said IG market analyst Tony Sycamore.
The latest exchange comes at a sensitive point for oil markets, which had begun to price in the possibility of a gradual easing of the disruption around Hormuz. Talks aimed at ending the conflict remain at an impasse, while mediators continue efforts to reopen the waterway to regular commercial shipping.
The Strait of Hormuz is one of the world’s most important energy chokepoints, linking the oil-producing Gulf states with global markets. Before the war began in late February, about a fifth of the world’s oil flows passed through the strait. The prolonged disruption has left traders closely watching any development that could either restore or further restrict those flows.
The number of visible commodity vessels crossing the strait fell to about five a day over the weekend, shipping data showed on Monday, as operators remained cautious amid attacks on commercial vessels. The actual number could be higher because some ships have switched off their automatic identification systems to avoid detection.
The United Kingdom Maritime Trade Operations reported on Sunday that a tanker was struck by a projectile while sailing inbound through the strait on Saturday.
“While the path to a deal to reopen the strait is elusive, increases in oil flows through the Hormuz strait kept concern over supply disruption in check,” ANZ analysts said in a client note.
The renewed military escalation therefore risks reversing some of the easing in supply concerns seen in recent weeks, particularly if fighting again disrupts vessel movements or threatens the ability of producers in the Gulf to export crude.
Oil prices
Technical charts showed that if the conflict escalated and pushed WTI above resistance at $85.80-$85.90 a barrel, it would open the way for further gains, initially towards last week’s $87.69 high, followed by July’s $93.50 high, Sycamore said.
Brent and WTI are still set to post small declines in August after falling more than 4% last week, their first weekly decline in three weeks.
The market is also watching measures that could help offset supply disruptions. US President Donald Trump said on Sunday that oil from a recently struck deal with Venezuela would be used to replenish the US Strategic Petroleum Reserve, which has fallen close to its lowest level in 44 years.
The latest rise in prices underscores the sensitivity of the oil market to developments around Hormuz, where even a limited military escalation can quickly revive concerns about the security of one of the world’s most important energy routes.
