Hormuz Tensions Send Brent Oil Prices Soaring to $90+
The price of Brent crude oil surged to over $90 per barrel on August 31 after US and Iranian forces exchanged military strikes in the Strait of Hormuz.
The escalation, which marks the first direct confrontation between the two countries in over a month, triggered a roughly 2.8% increase in Brent futures prices, breaking above the $90 level for the first time in nearly two weeks.
The US struck Iranian rocket launchers on Larak Island, while Iran responded with missile attacks targeting two US air bases in Jordan. President Donald Trump claimed that Kharg Island, Iran's primary oil export terminal, was damaged, although there is no independent confirmation of this.
Analysts suggest that absent a major new escalation, Brent could settle into a trading range between $85 and $95 per barrel, driven by ongoing geopolitical risk and tepid global demand growth.