US Strike on Iran Sparks Oil Price Surge Above $90 Per Barrel
Oil prices surged on Monday, August 31, 2026, after US forces struck two Iranian launchers on Larak Island near the Strait of Hormuz. Iran launched missiles reportedly targeting a US military base in Jordan, reviving fears of a wider conflict and disruption to crude shipments through the key waterway.
The strike by the US military was the first known action against Iran since late July, raising concerns that Tehran could retaliate against American assets or commercial shipping. Although the Strait of Hormuz has not been formally closed, ship operators have reduced transits due to security risks.
Murban crude, the UAE's flagship export grade, posted a 4.04% gain, while Brent crude rose above $90 a barrel. The US West Texas Intermediate (WTI) price also increased, but remained below extreme levels that would signal a full supply shutdown.
Markets remain volatile due to shifting expectations over the conflict and diplomatic efforts. A prolonged disruption in the Gulf could affect liquefied natural gas shipping as well as oil, with few vessels currently willing to risk the waterway.