Oil explodes back above $90 as US-Iran tensions reignite

Oil prices surged in early Asian trading Monday (August 31, 2026) after US forces struck two Iranian launchers on Larak Island near the Strait of Hormuz, and Iran launched missiles reportedly targeting a US military in Jordan, reviving fears of a wider conflict and renewed disruption to crude shipments through the key waterway.

At about 9:20 am Tokyo time, the OilPrice market dashboard showed:

WTI crude $84.57 a barrel +$1.17, or 1.40%

Brent crude $89.45 a barrel +$1.35, or 1.53%

Murban crude $95.75 a barrel +$3.72, or 4.04%

Brent had earlier climbed above the psychologically important $90-a-barrel level, reaching $90.32, while US West Texas Intermediate rose to $85.41, according to Reuters data at 7:02 am Tokyo time.

The US military said it struck two Iranian launchers that were allegedly preparing to fire mines into the Strait of Hormuz.

The attack was the first known US strike on Iran since late July, raising concerns that Tehran could retaliate against American assets, commercial shipping or energy infrastructure.

Although the waterway has not been formally closed, ship operators have reportedly reduced transits because of threats and security risks.

The immediate market concern is not only whether Iran blocks the waterway, but whether insurers, tanker owners and energy companies judge the route too risky to use.

Even a partial slowdown could tighten supplies and push up freight, fuel and petroleum-product prices across Asia.

Murban crude, the United Arab Emirates’ flagship export grade, posted the sharpest gain on the dashboard, rising more than 4%. Its stronger move than Brent and WTI reflects the market’s sensitivity to Gulf supply and shipping risks.

The divergence also shows that traders are pricing a greater premium into Middle East-linked barrels.

Gulf producers depend heavily on maritime routes, and any escalation around the Strait of Hormuz could affect crude exports, refined products and liquefied natural gas cargoes.

Despite the spike, the market remains below the extreme levels that would normally signal a full supply shutdown.

Traders are watching whether the US strike leads to further military action or remains an isolated operation.

Oil prices have also been volatile this month.

Brent futures have swung through a range of nearly $17 a barrel as markets reacted to shifting expectations over the conflict and possible diplomatic efforts.

The risk is that a prolonged disruption in the Gulf could eventually affect LNG shipping as well as oil.

Few LNG and oil vessels are currently willing to risk the waterway, according to reports, leaving the market vulnerable to another sharp move if attacks expand.

Market prices shown are from the supplied dashboard at approximately 9:20 am Tokyo time. Prices can differ by contract, exchange and data provider.