Oil prices rise more than 2% after direct conflict between the United States and Iran reignites after a month of pause

Oil prices rose more than 2% per barrel on Monday after the conflict in the Middle East reignited once again with the US attack on an Iranian island in the Strait of Hormuz and Tehran’s counterattack on US bases in Jordan. Brent crude oil gained $1.86, or 2.11%, to $89.96 a barrel, while WTI crude oil 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 surge in oil prices came as the conflict in the Middle East continues to escalate. US forces attacked two launchers on the Iranian island of Larak in the Strait of Hormuz on Sunday, in the first known US attack against Iran since late July.Iran responded by attacking two US air bases in Jordan, according to the Revolutionary Guard, cited by local media. Iranian state television later showed what it said were ballistic missiles fired at US bases in response to US attacks.Jordan’s military said it intercepted eight missiles that entered the country’s airspace early Monday. The latest exchange occurred as the conflict entered its sixth month. Talks to end the conflict are stalled as mediators work to reopen the Strait of Hormuz.A fifth of the world’s oil flowed through the Strait of Hormuz before the war began in late February, keeping the waterway at the center of concerns about oil supply as fighting intensifies.Shipping data showed the number of visible freight vessels sailing through the strait fell to five a day over the weekend, reflecting greater caution among companies.The UK’s Maritime Trade Operations said a tanker was hit by a shell while sailing into 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 attack came after Trump said on August 1 that he would order the military to postpone further attacks at the behest of Gulf allies Qatar, Saudi Arabia and the United Arab Emirates.The latest US military strike against Iran was confirmed on July 29, when Washington said it had carried out a “strong wave of attacks” against dozens of Revolutionary Guard targets, including coastal defense and surveillance sites.Iran’s Revolutionary Guard criticized Sunday’s attack. Guard spokesman 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 that the enemy will pay the consequences militarily and economically.The U.S. move toward sanctions came as the administration considers reducing ammunition stockpiles after months of war, raising concerns that a prolonged conflict could weaken U.S. military readiness elsewhere in the world.Meanwhile, Trump said Sunday that oil from a recently reached deal with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen near its lowest level in 44 years.