US-Iran war: Oil prices rose by more than 1% on Monday after the US launched an attack on an Iranian island in the Strait of Hormuz, prompting retaliation from Tehran and intensifying the Middle East conflict as it entered its sixth month.
Brent crude futures gained $1.08, or 1.23%, to $89.18 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures advanced 92 cents, or 1.10%, to $84.32 per barrel.
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The US military on Sunday targeted Iranian rocket launchers that were preparing to deploy mines in the waterway, according to Captain Tim Hawkins, a spokesperson for US Central Command. The strike ended several weeks of relative calm in the region.
Iran has also started launching attacks against US forces stationed in Jordan, with several missiles reportedly intercepted and no major damage has been reported so far, according to a Fox News report.
Crude oil is heading toward the end of a highly volatile month, with Brent futures fluctuating within a range of nearly $17 a barrel. Oil prices have been influenced by intermittent efforts to broker an end to the US-Iran war, along with Treasury Secretary Scott Bessent’s pledge to intensify measures aimed at isolating Iran and putting further pressure on its economy.
Despite the absence of a peace agreement, traders tracking shipments estimate that around 6 million to 8 million barrels of crude are still passing through the Strait of Hormuz each day. Iran’s semi-official Mehr news agency separately reported that shipping through a Tehran-approved route was continuing on a limited basis, with vessels reportedly paying tolls for passage.
The top US military commander overseeing the Middle East said late last week that American forces had removed Iranian mines from the Strait of Hormuz and declared the shipping lanes open. The strategic waterway connects the Persian Gulf with global oil markets and has remained a key point of contention since the conflict began in late February.
Meanwhile, outside the Middle East, Washington has moved to take direct control of more than 65 billion barrels of Venezuela’s oil reserves through a proposed 100-year concession covering 17 fields. US President Donald Trump said the oil would be used to replenish the country’s depleted emergency petroleum reserves.
The conflicts involving the US and Iran, as well as the ongoing Russia-Ukraine war, have pushed up prices of refined petroleum products, particularly diesel. Trump is scheduled to meet US refining executives on Tuesday to discuss measures to bring fuel prices down.
(With inputs from agencies)
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