Crude Oil Prices Rise Over 1% After US Attack on Iran’s Larak Island | August 31, 2026

Crude oil prices climbed more than 1% on Monday, August 31, 2026, after the United States carried out strikes on Iran’s Larak island in the Strait of Hormuz, prompting retaliation from Tehran. The latest developments have added to concerns over the movement of oil through the key shipping route. 

Brent crude futures rose $1.08, or 1.23%, to $89.18 a barrel at 0040 GMT. US West Texas Intermediate crude gained 92 cents, or 1.10%, to $84.32 a barrel. 

US-Iran Conflict Raises Supply Concerns 

US forces struck two launchers on Larak island on Sunday, August 30, 2026, marking the first known American strikes on the Gulf nation since late July 2026. Iranian media reported that Iran’s Revolutionary Guards later attacked two US air bases in Jordan. 

Markets are now watching for signs of further escalation. IG market analyst Tony Sycamore said the situation could last for days or weeks, leaving traders uncertain about the next move. 

Strait of Hormuz Remains in Focus 

Efforts to end the conflict remain at an impasse, while mediators are working to reopen the Strait of Hormuz. Before the war began at the end of February, around one-fifth of the world’s oil supply moved through the waterway. 

ANZ analysts said rising oil flows through the strait had helped keep supply disruption fears under control. However, shipping activity has slowed. Visible commodity vessels passing through the waterway fell to around five a day over the weekend, according to shipping data. 

The United Kingdom Maritime Trade Operations also reported that a tanker was hit by a projectile while travelling inbound through the strait on Saturday, adding to concerns among shipping companies. 

Oil Prices Face Key Technical Levels 

WTI could see further gains if the conflict intensifies and prices break above the $85.80-$85.90 resistance zone, according to Sycamore. A sustained move above that level could put last week’s $87.69 high and July’s $93.50 high in view. 

Despite Monday’s rise, Brent and WTI are heading for small monthly declines in August after falling more than 4% last week, their first weekly decline in three weeks. 

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US Oil Reserve Plans Add to Market Focus 

US President Donald Trump said oil from a recently reached deal with Venezuela would be used to replenish the US Strategic Petroleum Reserve, which has fallen close to its lowest level in 44 years. 

Conclusion 

Crude oil prices are likely to remain sensitive to developments around the Strait of Hormuz. Any further military escalation or disruption to shipping could add pressure to global supply and push prices higher. 

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