Crude oil rose above $85 a barrel on Monday as tensions escalated in the Middle East, with the US and Iran exchanging strikes for the first time in about a month and concerns mounting over the security of the Strait of Hormuz. US forces hit Iranian military assets after detecting preparations to deploy naval mines in the waterway, while Iran retaliated with missile and drone attacks on US facilities in Jordan.
Iranian media also reported that a tanker had struck two mines and that authorities had seized a bulk carrier near Bandar Abbas. However, US Central Command said no vessels had hit mines in the Strait of Hormuz. The developments have intensified fears that a further military escalation could disrupt shipping lanes and tighten global energy supplies.
Oil prices are now roughly 1% higher in August, following a 21.8% surge in July. Despite the elevated risks, an estimated 6–8 million barrels of crude continue to pass through the Strait of Hormuz each day, largely from other Gulf producers.
