Oil prices rise more than 2% after US strike on Iran

Oil prices were trading more than 2% higher on August 31 after the US attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as the conflict in the Middle East entered its sixth month.

Brent crude futures climbed $2.51, or 2.85%, to $90.61 a barrel as of 02:41 GMT, while US West Texas Intermediate (WTI) crude rose $2.13, or 2.55%, to $85.53, Caliber.Az reports per Reuters.

Earlier, Iranian media reported an attack on Larak Island. It marked the first US strike on Iran since late July. In response, the Islamic Revolutionary Guard Corps (IRGC) attacked two US air bases in Jordan.

According to Reuters, citing market analysts, the latest escalation could last anywhere from several days to several weeks. If WTI crude breaks through the resistance level of $85.80–$85.90 per barrel, analysts see prices potentially rising first to $87.69 and then to the July high of $93.50.

By Jeyhun Aghazada