US-Iran Conflict Drives Oil Prices Higher Amid Military Escalation

Oil prices rose nearly 2% on August 31 after the US and Iran resumed military attacks, extending their conflict into its sixth month.

The US attacked an Iranian island in the Strait of Hormuz on August 30, targeting two launchers on Larak island. In response, Iran struck two US airbases in Jordan, according to Iranian media reports.

Brent crude futures climbed $1.77, or 2%, to $89.87 a barrel by 7:33 am GMT, while US West Texas Intermediate (WTI) crude was at $84.85, up $1.45, or 1.74%.

Suvro Sarkar, head of energy research at DBS, said 'We see more chances of contained confrontation rather than any sustained escalation in the conflict.'