Oil prices were up as much as 3% on Aug. 31 after the U.S. and Iran resumed attacks on one another in the Middle East.
The U.S. military struck two Iranian rocket launchers on Larak Island, marking a return to combat between Washington, D.C. and Tehran. Iran retaliated with missile strikes of its own.
The situation sent prices for international benchmark Brent crude oil up 3.22% to $90.94 U.S. per barrel U.S. West Texas Intermediate (WTI) crude oil was up 3.48% to $86.30 U.S. a barrel.
The latest attack is the first U.S. strike on Iranian positions since late July of this year.
The U.S. attack on Larak Island killed several Iranian soldiers, Iran’s Revolutionary Guard Corps said in a statement.
Iran added that it has responded with attacks on American military bases in Jordan.
U.S. President Donald Trump renewed his threats against Iran’s Kharg Island, the country’s main oil export terminal, saying on social media that it’s “going to be blown to smithereens!”
Traffic through the Strait of Hormuz waterway near Iran, a key route for oil shipments, has once again been disrupted by the Iran war, which has now entered its sixth month.
The effective closure of the Strait of Hormuz has raised concerns about oil supply risks and led to elevated crude prices, say analysts.
Separately, President Trump said over the weekend that his administration had struck a deal with Venezuela to secure 65 billion barrels of crude oil from the South American nation.
Trump said that the U.S. will use the oil from Venezuela to replenish its strategic petroleum reserves, which have fallen to their lowest level in more than 30 years.
The stocks of leading U.S. oil producers such as Chevron (CVX) and Occidental Petroleum (OXY) are each up about 2% on Aug. 31.
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