US-Iran Escalation in Hormuz Pushes Brent Above $90, WTI Gains More Than 2%

A fresh military escalation between the United States and Iran in the Strait of Hormuz sent oil prices up more than 2% on Monday.

Brent crude futures gained $2.21, or 2.51%, to reach $90.31 a barrel. At the same time, US West Texas Intermediate (WTI) rose by $1.83, or 2.19%, to $85.23 a barrel.

The market move followed US forces’ strikes on two missile launchers on Iran’s Larak Island on Sunday. The attacks in the Strait of Hormuz are among the first known US operations against Iranian territory since late July.

According to Iranian media, citing Iran’s Islamic Revolutionary Guard Corps, Tehran responded by striking two US air bases in Jordan.

US President Donald Trump wrote on social media on Sunday that Kharg Island, a major Iranian energy hub, was being “reduced to rubble.” However, no evidence was immediately presented that the island was under attack, while Trump’s post included an artificial intelligence-generated video and provided no further details.

Negotiations aimed at ending the conflict have stalled, while mediators are seeking a way to facilitate the reopening of the Strait of Hormuz.

Before the war began in late February, roughly one-fifth of the world’s oil passed through this maritime corridor. Shipping restrictions in the area have heightened uncertainty over global energy supplies while putting upward pressure on oil prices.

Savro Sarkar, head of energy research at DBS, said a limited confrontation was more likely than a continued expansion of the conflict. According to him, any escalation affects the projected timeline for reopening the Strait of Hormuz.

Sarkar explained that talks on a US-Iran agreement had previously been expected to resume by the end of the third quarter, but recent events have reduced the likelihood of that scenario materializing.

He added that oil prices are expected to remain within a range of $85-$95 a barrel until there is greater clarity about the situation in the Strait of Hormuz.

Maritime shipping data published on Monday showed that only five cargo ships per day passed through the strait over the weekend.

This reduction in traffic reflects shipping operators’ concerns about protecting crews and the risk of vessels being struck.

The United Kingdom Maritime Trade Operations (UKMTO) reported on Sunday that a tanker had been struck by a missile on Saturday while passing through the strait.

In a statement to Reuters, US Treasury Secretary Scott Bessent said the United States could announce new secondary sanctions against Iran every week.

Brent and WTI are expected to end August slightly lower. Both fell more than 4% last week, recording their first weekly loss in three weeks.

Trump also said on Sunday that oil expected to be obtained through the latest agreement with Venezuela would be used to replenish the US Strategic Petroleum Reserve, which is near a 44-year low.