Brent crude futures surged roughly 2.8% on August 31, breaking above $90 per barrel for the first time in nearly two weeks. The catalyst: US and Iranian forces exchanging military strikes in and around the Strait of Hormuz, the narrow waterway through which a significant share of the world’s seaborne oil flows.
The jump to around $90.53 to $90.61 per barrel came after both benchmarks had slumped more than 4% over the preceding week. West Texas Intermediate, the US pricing benchmark, climbed in sympathy to roughly $85.23 to $85.53.
What happened in the Strait
US forces struck two Iranian rocket launchers positioned on Larak Island, a strategically located outpost in the Strait of Hormuz. According to reports, the launchers were allegedly being prepared to mine the strait, a move that would have threatened the free passage of tankers through one of the most critical energy corridors on the planet.
Iran responded with missile attacks targeting two US air bases in Jordan. Local defense systems intercepted the incoming fire, preventing casualties on the ground.
