Oil rises to above $90 as US and Iran resume strikes

Oil prices rose on Monday morning after the <a href="https://www.thenationalnews.com/news/us/2026/08/30/us-strikes-iran-near-strait-of-hormuz-in-first-military-action-in-a-month/" target="_blank" rel="" title="https://www.thenationalnews.com/news/us/2026/08/30/us-strikes-iran-near-strait-of-hormuz-in-first-military-action-in-a-month/">US and Iran exchanged strikes for the first time in a month</a>, with Washington also threatening to increase economic pressure on Tehran's trading allies. Brent, the benchmark for two thirds of the world's oil, was up 2.24 per cent at $90.07 a barrel at 7.19am UAE time. West Texas Intermediate, the gauge that tracks US crude, was trading 1.94 per cent higher at $85.02 a barrel. Oil prices rose after the US struck Iranian targets linked to potential mining activity near the Strait of Hormuz. "Further US secondary sanctions on Iran are also expected, keeping geopolitical risk embedded in energy prices," said Daniel Richards, senior economist at Emirates NBD.<b> </b> US forces hit <a href="https://www.thenationalnews.com/search/?query=iran" target="_blank" rel="" title="https://www.thenationalnews.com/search/?query=iran">Iranian</a> rocket launchers on Larak Island near the Strait of Hormuz on Sunday, marking the first US military action against Iran in a month. Iran's Islamic Revolutionary Guard Corps was preparing to launch rockets carrying sea mines into the strait when US forces struck, a US official said. Iran responded with strikes on two US bases in Jordan, Iranian media said. Eight missiles were intercepted over Jordan, its military said. US President Donald Trump also shared a one-line post on Truth Social saying "Kharg Island being blown to smithereens," without any further details. Kharg Island, located off Iran's south-western coast, handles about 90 per cent of Iran’s oil exports, with estimates pegging its loading capacity at 7 million barrels per day and storage capacity at 30 million barrels. Meanwhile, US Treasury Secretary Scott Bessent told Reuters on Sunday that new secondary sanctions on Iran's trading partners would probably be unveiled on a weekly basis. "We're starting with the banks, and we're telling the banks it's not okay to have Iranian money and to aid the regime," Mr Bessent said. Crude oil prices have swung sharply over <a href="https://www.thenationalnews.com/news/mena/2026/08/27/live-us-iran-qatar/" target="_blank" rel="" title="https://www.thenationalnews.com/news/mena/2026/08/27/live-us-iran-qatar/">six months of war</a>, with Brent hitting an intraday high of about $126 a barrel in April before falling back as diplomatic efforts eased fears of a prolonged disruption to global supplies. Shipping through the Strait of Hormuz, which, before the war, carried about a fifth of the world's energy exports, has dropped in recent days amid concerns about an escalation in hostilities.