Oil rises over 3% as US, Iran resumes military attacks

Oil prices surged nearly 2% on Monday following the United States' military strike on an Iranian island in the Strait of Hormuz and Iran's subsequent counterattacks. Brent crude futures increased by $1.77, or 2%, reaching $89.87 per barrel, while U.S. West Texas Intermediate crude rose by $1.45, or 1.74%, to $84.85 per barrel. On Sunday, U.S. forces targeted two launchers on Iran's Larak Island, the first known American strikes on the country since late July.

Iran responded by attacking two U.S. air bases in Jordan, according to Iranian media reports. U.S. President Donald Trump claimed in a social media post that Iran targeted Kharg Island, but no evidence of such an attack was found. The conflict's extension into its sixth month has raised concerns about the timeline for reopening the Strait of Hormuz, which carries a fifth of the world's oil.

Negotiations to end the conflict remain stalled, and U.S. Treasury Secretary Scott Bessent announced that the U.S. is expected to issue weekly secondary sanctions against Iran. Oil prices are expected to remain within a range of $85-95 per barrel unless further developments occur in the Strait of Hormuz.