US-Iran Conflict Reignites, Oil Prices Surge Above $90

The US-Iran conflict has reignited after a month of relative calm, with clashes resuming on August 30. The escalation began when American forces struck Iranian rocket launchers deployed on Larak Island, in an operation aimed at preventing Iran's Islamic Revolutionary Guard Corps from laying mines in the Strait of Hormuz.

The US had previously shifted its strategy from direct military strikes to economic sanctions and blockades against Iran, seeking to apply pressure through tightened sanctions and a sustained naval blockade. However, this approach has been challenged by Iran's recent actions, which have pushed oil prices higher.

Brent crude broke above $90 per barrel on August 31, with the price increase driven by concerns over supply disruptions in the region. The surge reversed the previous decline, which had seen Brent fall to around $89.3 due to expectations that the conflict was an economic sanction issue rather than a supply threat.

The conflict's impact on markets has been significant, with energy stocks rallying on higher oil prices and US stock indices experiencing losses on August 31. The S&P 500 fell 0.33%, while the Dow Jones Industrial Average dropped 374.09 points (-0.7%).