Oil Prices Spike 2% as US Fresh Strike Triggers Iran Retaliation

By Adedapo Adesanya

Oil prices climbed 2 per cent on Monday morning after the United States struck Iran for the first time in over a month, with Iran then retaliating against American bases in Jordan.

At the time of writing, Brent crude climbed 2.7 per cent to $90.49 per barrel while the US West Texas Intermediate (WTI) stood at $85.46 per barrel, up 2.47 per cent.

The latest escalation started on Sunday when US forces struck two Iranian rocket launchers on Larak Island, which sits inside the Strait of Hormuz.

According to a US Central Command spokesperson, the attack came after the Iranian Revolutionary Guard Corps (IRGC) were observed “preparing to launch rockets with sea mines into the Strait of Hormuz.”

CENTCOM later described the action as a “limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz.”

The US government said its attacks were aimed at preventing Iran from placing more sea mines in the strait, days after it announced it had completed clearing explosives from the waterway.

“US forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,” the US Central Command wrote on X.

In recent weeks, the administration of US President Donald Trump has prioritised “economic warfare” over military strikes on Iran as it sought to reopen the Strait of Hormuz.

Iran had effectively blocked the Strait of Hormuz, a strategic sea lane through which one-fifth of the world’s oil passed before the US and Israel triggered hostilities with strikes on Iran on February 28.

A ceasefire in April put an end to the most intense fighting, but sporadic attacks — mainly around the Strait of Hormuz — have dimmed the prospects of a final peace agreement, even as there were no strikes for most of August.

The last US strike on Iran before Sunday came on July 29 in response to “an attempted surprise attack on US forces” in the region, the US military said. Earlier in July, CENTCOM attacked Iran for 13 consecutive nights.

Throughout the war, Iran has fought back by striking US facilities and allies in the Gulf region, hitting targets in Kuwait, Oman, Saudi Arabia and the United Arab Emirates, among others.

Its closure of the Strait of Hormuz has caused disruptions around the world, including price hikes and shortages of fertiliser and energy.