Oil rises over 3% as US, Iran resumes military attacks

Crude benchmarks gained more than 3.5% on Monday, according to The Express Tribune, after the US hit an Iranian island in the Strait of Hormuz and Tehran said it had struck back. The fighting has now lasted six months. Brent futures climbed $3.15, or 3.58%, to $91.25 a barrel by 0903 GMT, while West Texas Intermediate advanced to $86.36.

US forces hit two launchers on Larak Island on Sunday, marking the first American attacks on Iranian territory since late July. Iranian media, citing the Revolutionary Guards, reported that Tehran responded by targeting two US air bases in Jordan. Trump claimed on social media that Kharg Island, Iran's energy hub, had been wrecked, but no evidence of an attack surfaced and Iran denied any strike there.

Analysts pointed to supply worries and thin trading during a UK public holiday as factors behind the sharp move, and shipping data showed only five visible commodity vessels a day crossing the strait over the weekend. Despite Monday's gain, both benchmarks are set for modest August losses after dropping more than 4% last week, their first weekly fall in three weeks.