US-Iran Conflict Drives Oil Prices Higher Amid Shipping Disruption Fears

US energy stocks rose in pre-market trading on August 31 as tensions between the US and Iran escalated, driving up international oil prices. The conflict in the Middle East has raised concerns about shipping disruptions through the Strait of Hormuz, a critical global energy transport channel that handles nearly one-fifth of global crude oil and liquefied natural gas shipments.

Brent crude briefly topped $91 per barrel, while WTI crude rose to near $86 per barrel. Energy stocks such as Chevron (CVX), Halliburton (HAL), Valero Energy (VLO), Occidental Petroleum (OXY), and ExxonMobil (XOM) also saw significant gains in pre-market trading.

The US military conducted strikes on Sunday against missile launch facilities on Iran's Larak Island, prompting retaliatory attacks from Iran. This has reignited market concerns that the conflict could escalate further, driving up risk premiums across energy markets.