Brent Crude Surges to $89 as Fighting Resumes in Strait of Hormuz

Oil prices surged on August 31 after fresh fighting erupted in the Strait of Hormuz, underscoring the risks to West Asian supply flows.

Brent crude rose 1.6% to $89.50 a barrel, while West Texas Intermediate gained 1.5% to $84.63 a barrel.

The US military struck Iranian rocket launchers on August 30 after alleging that Tehran had prepared to lay mines in the waterway, said Captain Tim Hawkins of US Central Command.

Iran also attacked American forces in Jordan, according to an unnamed US source familiar with the matter. The missiles fired at US positions were intercepted, and no significant damage was reported so far.