US-Iran Conflict Drives Oil Prices Higher Amid Escalating Tensions
Oil prices surged more than 2% on August 31 after the US attacked an Iranian island in the Strait of Hormuz, drawing retaliation from Tehran. The conflict has been ongoing for six months.
The attack on Iran's Larak island pushed Brent crude futures up $2.51, or 2.85%, to $90.61 a barrel as of 2:41am GMT, while US West Texas Intermediate crude rose $2.13, or 2.55%, to $85.53.
US forces struck two launchers on the island in response to Iranian aggression, and Iran retaliated by attacking two US air bases in Jordan, according to reports from Iranian media citing the Revolutionary Guards.
'Looks like we are in another escalation phase,' IG market analyst Tony Sycamore said. 'How long that lasts is impossible to determine. Could be days, could be weeks.'