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Oil prices surged Monday as renewed combat between the United States and Iran rattled energy markets and intensified fears that global crude supplies could face further disruption. Brent crude climbed above $90 a barrel after American forces attacked Iranian rocket launchers on strategically important Larak Island.

September futures for Brent, the international oil benchmark, advanced 3.3% to $90.99 a barrel. Front month futures for U.S. West Texas Intermediate crude gained 3.6% and traded at $86.36 per barrel.

The sharp move reflected an immediate geopolitical risk premium as traders confronted another escalation near the Strait of Hormuz. Any sustained threat to shipping through that narrow waterway could have significant consequences for crude prices, refined fuel costs, inflation, and global economic growth.

“I can confirm that earlier today U.S. forces struck two Iranian launchers on Larak Island. Islamic Revolutionary Guard Corps forces were observed preparing to launch rockets with sea mines into the Strait of Hormuz,” Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, said in a statement.

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The operation represented the first publicly acknowledged American strike against Iranian positions since late July, according to the Associated Press. Its location was especially sensitive because Larak Island sits near one of the most important energy transit corridors in the world.

Iran’s Revolutionary Guards Corps said the American attack killed and wounded several Iranian soldiers. Iranian media subsequently reported that Tehran responded by attacking U.S. military bases in Jordan, raising the danger of a broader cycle of retaliation.

President Donald Trump also expanded his warnings against Tehran by threatening Kharg Island, Iran’s primary oil export terminal. In a Sunday evening post on Truth Social, Trump said the facility is “going to be blown to smithereens!”

That warning placed Iran’s export infrastructure directly at the center of market calculations. Kharg Island handles a major share of the country’s crude shipments, so an attack there could severely impair Tehran’s ability to sell oil and potentially invite a larger Iranian response.

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Vessel traffic through the Strait of Hormuz has already been severely disrupted as the Middle East conflict enters its sixth month. The strait remains a critical artery for international energy shipments, making even temporary interruptions capable of tightening physical markets and lifting transportation and insurance costs.

“Supply risk will persist and oil inventories will continue to deplete in the coming weeks and months,” said Tamas Varga, an analyst at PVM Oil Associates. His warning suggests that the latest price increase may be more than a brief reaction if shipping disruptions and military operations continue.

Varga added that “the Iranian crisis has likely changed the security status quo in the Middle East.” That assessment points to a market in which traders may be forced to assign a lasting premium to crude because previous assumptions about regional restraint no longer appear dependable.

Refining infrastructure is also coming under pressure, creating risks beyond the availability of crude itself. Attacks affecting facilities in the Middle East and Russia have reduced flexibility in a global refining system that was already operating with limited spare capacity.

“Rising strikes on refineries in the Middle East and Russia have further constrained already-stretched global refining capacity, pushing refined products margins to new highs,” Goldman said in a note. Higher margins can translate into more expensive gasoline, diesel, and aviation fuel even when crude supply remains technically available.

For investors, the renewed fighting strengthens the appeal of energy producers and other assets positioned to benefit from higher commodity prices. At the same time, elevated oil costs can squeeze transportation companies, manufacturers, consumers, and businesses that lack the ability to pass rising expenses along.

Persistent strength in crude could also complicate the inflation outlook for central banks. More expensive fuel filters throughout the economy, potentially delaying interest rate relief and increasing pressure on households already contending with elevated living costs.

Markets will now watch military developments around Larak Island, Kharg Island, Jordan, and the Strait of Hormuz for signs of either escalation or restraint. With inventories expected to decline and refining capacity stretched thin, any additional attack on shipping or energy infrastructure could send oil prices sharply higher.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.