Oil prices experienced a significant surge of over 2% in early trading on Monday, driven by heightened concerns over supply disruptions following a U.S. military strike on two Iranian rocket launchers located on Larak Island. This action marks a notable escalation in the ongoing tensions between Washington and Tehran.
Vessels are seen in the Strait of Hormuz, off the port city of Bandar Abbas in southern Iran on August 10, 2026.
Atta Kenare | Afp | Getty Images
Futures for the international benchmark Brent crude for September delivery climbed 2.4% to trade at $90.24 a barrel by 4:17 a.m. ET. Simultaneously, front-month U.S. West Texas Intermediate (WTI) futures added 2.4%, with trading at $85.34 per barrel.
Stock Chart IconStock chart icon
Crude oil futures
Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, stated, "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." This incident was the first publicly acknowledged U.S. strike on Iranian positions since late July, according to the Associated Press.
Iran's Revolutionary Guards Corps claimed that the U.S. attack resulted in casualties among Iranian soldiers and announced retaliatory attacks on American military bases in Jordan, citing reports from Iranian media. Meanwhile, U.S. President Donald Trump intensified his threats against Iran, targeting Kharg Island, the nation's primary oil export terminal, with a post on Truth Social stating it "'s going to be blown to smithereens!'"
Vessel traffic through the Strait of Hormuz, a critical artery for global energy shipments, has already been significantly impacted by the ongoing Middle East conflict, which has now entered its sixth month.
Analysts suggest that supply risks will persist, leading to further depletion of oil inventories in the coming weeks and months. The Iranian crisis is believed to have fundamentally altered the security dynamics in the Middle East. Furthermore, an increase in strikes on refineries in the Middle East and Russia has exacerbated existing constraints on global refining capacity, pushing refined product margins to record highs.
—CNBC's Anniek Bao contributed to the report.
