US-Iran Conflict Pushes Oil Prices Higher

Oil prices surged more than 3.5% on August 31 after the United States and Iran engaged in a new round of attacks, raising concerns about further disruptions to global oil supplies.

The price hike came as US forces struck two launchers on Iran's Larak Island in the Strait of Hormuz, with Tehran responding by attacking two US air bases in Jordan, according to Iranian media reports.

UBS analyst Giovanni Staunovo attributed the market reaction to 'renewed military strikes' and concerns about oil supply disruptions, stating that markets will now focus on whether the situation de-escalates or not.