Oil prices rose more than 2% per barrel on Monday after conflict in the Middle East reignited once again with US attacking an Iranian island in the Strait of Hormuz, and Tehran hitting back at US bases in Jordan. Brent crude gained $1.86, or 2.11%, to $89.96 a barrel while WTI crude rose $1.60, or 1.92%, to $85.00 a barrel.Global benchmarks fell more than 4% last week, their first weekly decline in three weeks.The latest rise in oil prices came as the conflict in the Middle East continues to intensify. US forces struck two launchers on Iran’s Larak island in the Strait of Hormuz on Sunday, marking the first known US strike on Iran since late July.Iran responded by attacking two US air bases in Jordan, according to the Revolutionary Guards, cited by local media. Iranian state television later showed what it said were ballistic missiles being fired at the US bases in response to the American strikes.Jordan’s armed forces said they intercepted eight missiles that entered the country’s airspace early Monday. The latest exchange came as the conflict entered its sixth month. Talks to end the conflict are at an impasse, while mediators are working to reopen the Strait of Hormuz.A fifth of the world’s oil flowed through the Strait of Hormuz before the war began at the end of February, keeping the waterway central to concerns over oil supplies as fighting intensifies.Shipping data showed that the number of visible commodity vessels sailing through the strait fell to five a day over the weekend, reflecting greater caution among companies.The United Kingdom Maritime Trade Operations said a tanker was hit by a projectile while sailing inbound through the strait on Saturday.The latest attack came days after the Trump administration said it would focus on economic pressure rather than military action to try to end the war with Iran.The plan includes threats to punish countries and entities that continue to do business with Tehran.The latest US strike came after Trump had said on August 1 that he would order the military to hold off on new strikes at the urging of Gulf allies Qatar, Saudi Arabia and the United Arab Emirates.The last US military strike on Iran was confirmed on July 29, when Washington said it had carried out a “heavy wave of strikes” on dozens of Revolutionary Guard targets, including coastal surveillance and defence sites.Iran’s Revolutionary Guard criticised Sunday’s attack. Guard spokesperson Gen. Hossein Mohebi said in a statement carried by Iranian media that it was a “fatal mistake by the Trump regime during the economic war” and the enemy will pay the consequences militarily and economically.The US move towards sanctions came as the administration considers lower munitions stockpiles after months of war, raising concerns that a prolonged conflict could weaken US military readiness in other parts of the world.Meanwhile, Trump said on Sunday that oil from a recently struck deal with Venezuela would be used to refill the US Strategic Petroleum Reserve, which has fallen close to its lowest level in 44 years.
