Oil Jumps Amid Renewed Hostilities Between US, Iran

02:49 PM EDT, 08/31/2026 (MT Newswires) -- Oil prices were rising Monday amid renewed hostilities in the Middle East as the US and Iran reportedly exchanged strikes for the first time in a month. West Texas Intermediate crude was up 2.9% at $85.84 a barrel in afternoon trade, while Brent rose 2.8% to $90.55, putting both benchmarks on track for back-to-back monthly gains. Brent has gained 2.6% in August after increasing about 21% last month, while WTI is up 1.2% for the month following a nearly 22% jump in July. On Sunday, American forces attacked two Iranian rocket launchers on Iran's Larak Island, news outlets reported. The attack came as Iran's Islamic Revolutionary Guard Corps was preparing to launch rockets with sea mines into the Strait of Hormuz, CNN reported, citing a spokesperson for the US Central Command. The narrow waterway is the world's most important chokepoint for crude flows. The attack is the first confirmed US military strike against Iran since late last month and comes after Washington launched an economic campaign last week to cut off financial channels that support Iran. Earlier this month, a 60-day ceasefire between the US and Iran expired, with no signs of near-term engagement prospects. Iran said it retaliated by attacking US military bases in Jordan and the United Arab Emirates, according to a CNN report. "We are not seeking war," Iranian President Masoud Pezeshkian reportedly said Monday. "But in the face of aggression, we will never sit idly by, and we are capable of delivering a decisive response." US President Donald Trump promised a retaliatory strike following recent escalations, according to media reports on Monday. "We're going to hit them hard," Trump told Fox News. "These developments have once again reduced the prospects of bringing the conflict to an end," Saxo Bank said in a report. "However, with an estimated (6 million to 8) million barrels per day of crude flowing through the (Strait of Hormuz), the upside risk is for now being capped." The US is expected to announce weekly new secondary sanctions meant to raise economic pressure on Iran, with a preliminary focus on banks, Reuters reported Sunday, citing US Treasury Secretary Scott Bessent.