Oil jumps at week’s open as US military hits Iranian launchers

Oil prices soared at the start of the week as US military forces targeted Iranian rocket launchers positioning to fire mines into the Strait of Hormuz, according to Captain Tim Hawkins from US Central Command. The strike came after months of fighting, which has raised concerns about disruptions to Middle East oil flows. Brent crude for November futures climbed toward US$90 per barrel, while West Texas Intermediate hovered near US$85.

Iran has recently launched attacks against American forces in Jordan, with missiles intercepted, as reported by Fox News through an unnamed US source. There has been no substantial damage thus far, as stated by Fox.

Crude oil has experienced a volatile month, with Brent futures fluctuating within a nearly US$17 range. Price movements have been influenced by attempts to resolve the US-Iran conflict and Treasury Secretary Scott Bessent's efforts to pressure Iran into economic capitulation through intensified economic isolation. Despite the lack of a peace agreement, approximately 6 million to 8 million barrels per day of crude continue to pass through the Strait of Hormuz, according to traders.

Iranian semi-official news agency Mehr reported that vessel traffic along an approved route was operating "on a limited basis," with vessels reportedly paying tolls. The US commander for the Middle East confirmed the clearance of Iranian mines from Hormuz, declaring shipping lanes open, which was crucial for maintaining the waterway's status as a vital link between the Persian Gulf and global markets.

While the conflict has primarily centered on the Middle East, the US has also taken steps to assert control over Venezuelan oil reserves, with plans to exploit 100-year concessions over 17 fields. The US-Iran conflict has contributed to the rise in petroleum product prices, particularly diesel.

On September 1, US President Donald Trump planned to meet with refining executives to discuss strategies for reducing oil prices. However, Brent futures trading may be lower than usual on the August 31 session, coinciding with a national holiday in parts of the UK, including England.