Oil rises over 3% as US and Iran resume military attacks

Business Recorder reported that oil prices rose by more than 3 per cent on Monday, after Washington launched strikes on Iranian territory near the Strait of Hormuz and Tehran said it had hit back. The conflict, now in its sixth month, pushed Brent crude futures up $2.87 to $90.97 a barrel, while West Texas Intermediate gained $2.91 to $86.31.

The strikes were the first known American action against Iran since late July, hitting two launchers on Larak Island on Sunday. Iran responded by attacking two US air bases in Jordan, according to Iranian media citing the Revolutionary Guards. UBS analyst Giovanni Staunovo linked the rally to renewed strikes and fears of further supply disruption.

Talks to end the war remain stalled while mediators try to reopen the Strait of Hormuz, which handled a fifth of world oil supplies before fighting began in late February. Shipping data showed only five visible commodity vessels a day transited the strait over the weekend, and Saxo Bank's Ole Hansen said thin trading during a UK holiday partly explained the move.