Oil rises over 1% after U.S. forces strike two Iranian rocket launchers on Larak Island; first military action in weeks

Oil prices surged over 1% following a U.S. military strike on Iranian rocket launchers on Larak Island, marking the first military action in weeks. Futures for international benchmark crude rose 1.54% to $89.46 a barrel amid heightened concerns over supply disruptions in the Middle East.

CNBC31 August 2026 · 01:11 UTC

CuriousCats Full Story

Oil prices rose more than 1% in early Asian trading on Monday, with futures for the international benchmark gaining 1.54% to $89.46 a barrel. This increase follows a U.S. military strike on Iranian rocket launchers on Larak Island, which was confirmed by Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, stating, "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."¹²³⁴

The attack, which resulted in casualties among Iranian soldiers, is the first publicly acknowledged U.S. strike on Iranian positions since late July, according to the Associated Press.

The Iranian Revolutionary Guards Corps reported that they retaliated with attacks on American military bases in Jordan.

The conflict has severely disrupted vessel traffic through the Strait of Hormuz, a crucial route for global energy shipments, as the Middle East conflict enters its sixth month.

Tamas Varga, an analyst at PVM Oil Associates, noted, "Supply risk will persist and oil inventories will continue to deplete in the coming weeks and months," emphasizing that "the Iranian crisis has likely changed the security status quo in the Middle East." Additionally, Goldman Sachs highlighted that "Rising strikes on refineries in the Middle East and Russia have further constrained already-stretched global refining capacity, pushing refined products margins to new highs."

Key Insight

“International benchmark futures for November delivery gained 1.54% to $89.46 a barrel, while U.S. futures for October advanced 1.44% to $84.60. The strike on Larak Island marks the first U.S. military action in weeks, escalating tensions in the Strait of Hormuz.”