Oil jumps more than 1% after US attack on Iran's Larak island

Oil climbed by over $1 per barrel on Monday, following American strikes on Larak island near the Hormuz waterway. Business Recorder reported that Iranian media, citing the Revolutionary Guards, said Tehran struck two US air bases in Jordan in retaliation. Brent crude futures gained $1.08, or 1.23%, to $89.18 a barrel by 0040 GMT, while West Texas Intermediate rose 92 cents, or 1.10%, to $84.32.

US forces hit two launchers on Larak island on Sunday, marking the first known attack on Iran since late July. IG market analyst Tony Sycamore said the escalation could last days or weeks, and chart resistance for WTI sits at $85.80 to $85.90 a barrel. ANZ analysts said that higher oil flows through the strait eased supply worries, though a deal to reopen it remains out of reach.

Brent and WTI are on track for modest August declines after a drop of over 4% last week, their first weekly fall in three. Shipping data showed that only five visible commodity vessels a day sailed through the strait over the weekend, as companies stayed wary of attacks, and a tanker was hit by a projectile on Saturday. Separately, Donald Trump said oil from a recent Venezuela deal will go into the US Strategic Petroleum Reserve, which is near its lowest point in 44 years.