Oil Prices Rise After US Strikes Iranian Targets Near Strait of Hormuz

Oil prices climbed in early Asian trade on Monday after the United States military conducted strikes against two Iranian missile launchers on Larak Island, escalating geopolitical tensions in a key global energy chokepoint.

The development immediately renewed investor concerns over potential disruptions to crude oil flows through the nearby Strait of Hormuz.

Details of the Escalation

U.S. forces carried out the military operation on Sunday against two launchers that were reportedly being prepared to fire rockets carrying sea mines into the strategic waterway, according to a U.S. official. The strikes mark the first known American military action on Iranian soil since late July.

In an apparent retaliation, Iran launched missiles at U.S. forces stationed in Jordan, a Fox News report citing a U.S. source said. The report indicated that nearly all incoming missiles were intercepted and there was no significant impact from the attack.

Market Reaction

The market responded swiftly to the heightened risk premium. As of 20:07 ET (00:07 GMT), key benchmarks showed significant gains:

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• Brent Oil Futures for November delivery rose 1.7% to $89.62 per barrel.
• West Texas Intermediate (WTI) crude futures climbed 1.6% to $84.69 per barrel.

Oil markets have remained highly sensitive to the Middle East conflict this year. The Strait of Hormuz, through which roughly a fifth of global oil supplies normally passes, has already seen shipping traffic significantly reduced due to persistent attacks and security risks.

Broader Context

This latest incident follows a period of elevated prices, with Brent having previously reached its highest closing level since late July on doubts over progress in U.S.-Iran peace negotiations. Traders will continue to monitor the potential for further military escalation and its impact on shipping through the vital strait.

Separately, markets are also assessing supply-side developments, including a recent announcement by U.S. President Donald Trump that Washington would begin replenishing the Strategic Petroleum Reserve with oil from a new agreement with Venezuela.