RismadarVoice Reporters
August 31, 2026
Global oil prices climbed more than 2 per cent on Monday following a reported United States military strike on Iran’s Larak Island in the Strait of Hormuz and subsequent retaliation threats from Tehran.
Brent crude futures increased by $2.51, or 2.85 per cent, to trade at $90.61 per barrel, while US West Texas Intermediate (WTI) crude rose by $2.13, or 2.55 per cent, to $85.53 per barrel.
The increase came after US forces reportedly targeted two Iranian launchers on Larak Island on Sunday, marking the first known American strikes on Iranian territory since late July.
Iran’s Islamic Revolutionary Guards Corps (IRGC) later responded by attacking two US air bases in Jordan, according to Iranian media reports.
Market analysts said the latest escalation has increased concerns over possible disruptions to energy supplies from the Middle East, particularly through the Strait of Hormuz, a key global oil shipping route.
IG market analyst Tony Sycamore said the conflict appeared to have entered another escalation phase, adding that the duration of the situation remained uncertain.
“Could be days, could be weeks,” Sycamore said, as investors monitored developments in the region.
The Strait of Hormuz, which previously handled about one-fifth of global oil flows before the conflict began in February, has remained a major focus for international markets amid efforts to restore shipping activity.
Negotiations aimed at ending the conflict have stalled, while international mediators continue efforts to reopen the strategic waterway.
Shipping data showed the number of visible commodity vessels passing through the Strait of Hormuz dropped to about five per day over the weekend, reflecting increased caution among shipping companies concerned about possible attacks.
The United Kingdom Maritime Trade Operations also reported that a tanker was struck by a projectile while travelling through the strait on Saturday.
Meanwhile, US Treasury Secretary Scott Bessent said Washington was likely to introduce additional secondary sanctions against Iran on a weekly basis as part of efforts to increase economic pressure on Tehran.
US President Donald Trump also said oil from a recent agreement with Venezuela would be used to replenish the United States Strategic Petroleum Reserve, which has fallen close to its lowest level in more than four decades.
Despite the latest increase, Brent and WTI remained on course for slight monthly declines in August after oil prices fell more than 4 per cent the previous week. However, analysts warned that further military escalation could push prices higher.
