Oil prices rise after US attacks Iran’s island in Hormuz

Oil prices were trading more than 2% ‌higher on Monday, August 31, 2026, after the United States attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as their conflict extended into its sixth month.

Brent crude futures climbed $2.21, or 2.51%, to $90.31 a barrel as of 0436 GMT, while U.S. West Texas ​Intermediate crude was at $85.23, up $1.83, or 2.19%.

U.S. forces struck two launchers on Iran’s Larak Island in the Strait ​of Hormuz on Sunday, the first known American strikes on the country since late July.

In ⁠response, Iran attacked two U.S. air bases in Jordan, Iranian media reported on Monday, citing Iran’s Revolutionary Guards.

U.S. ​President Donald Trump said in a brief social media post on Sunday that Iran’s energy hub of Kharg Island was being “blown ​to smithereens”, but there was no evidence that the island was under attack and the post, accompanied by an AI-generated clip, contained no further details.

Negotiations to end the conflict are at an impasse while mediators work to reopen the Strait of Hormuz, through which ​a fifth of the world’s oil flowed before the war began at the end of February.

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The head of energy research at DBS, Suvro Sarkar, told Reuters: “We see more ​chances of contained confrontation rather than any sustained escalation in the conflict. What continues to be impacted with every flare up are ‌the ⁠timelines for Hormuz ‘reopening’.

“We were earlier hoping that we could be back to deal negotiations for U.S.-Iran by the end of 3Q, but that is looking more unlikely now. Thus, expect oil prices to remain rangebound in the $85-95 per barrel range unless more clarity emerges on the situation in ​the Strait of Hormuz.”

The number ​of visible commodity vessels ⁠that sailed through the strait over the weekend dropped to five a day, shipping data showed on Monday, reflecting caution among companies wary of attacks on ships.