Oil prices were trading nearly 2% higher on Monday after the United States (US) 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 $1.77, or 2%, to $89.87 a barrel while US West Texas Intermediate crude was at $84.85, up $1.45, or 1.74%.
US 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 US air bases in Jordan, Iranian media reported on Monday, citing Iran’s Revolutionary Guards.
US 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.
Iran denied the attack on the island, adding that oil operations continued.
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.
–Reuters–
