Oil Prices Today, August 31, 2026: Brent Crude Rises 2.3% To $90.15, WTI Gains 2% As US-Iran Tensions Escalate

Mumbai, August 31: Oil prices climbed more than 2% on Monday, with Brent crude moving back above the $90-a-barrel mark, after the United States struck Iranian launchers on Larak Island in the Strait of Hormuz and Tehran retaliated against U.S. military targets in Jordan. 

Brent crude futures rose 2.3% to $90.15 a barrel, while U.S. West Texas Intermediate crude gained 2% to $85 a barrel, as investors assessed the risk of a broader escalation in the Middle East and potential disruption to oil supplies through the strategically important waterway. 

US Strike On Iran Raises Supply Concerns 

U.S. forces struck two Iranian launchers on Larak Island on Sunday, marking the first known American strikes on Iran since late July. The launchers were targeted as Washington sought to prevent Iran from deploying sea mines into the Strait of Hormuz. 

Iran’s Revolutionary Guards subsequently said it had attacked two U.S. air bases in Jordan, raising fears that the latest exchange could mark the beginning of another escalation in the six-month-long conflict. 

The renewed hostilities have quickly fed into oil markets because of the Strait of Hormuz’s importance to global energy supplies. About one-fifth of the world’s oil passed through the waterway before the conflict began in February. 

Strait Of Hormuz In Focus 

Both contracts jumped as tensions escalated in the Middle East. Source: oilprice.com

The prospect of prolonged disruption to shipping remains the biggest risk for crude prices. Negotiations aimed at ending the conflict remain at an impasse, while mediators continue efforts to reopen the Strait of Hormuz. 

Oil flows through the waterway had shown some improvement, helping keep supply concerns in check, according to analysts. However, shipping activity has again come under pressure as companies become increasingly wary of attacks. 

The number of visible commodity vessels sailing through the Strait fell to five a day over the weekend, shipping data showed. The United Kingdom Maritime Trade Operations also reported that a tanker was struck by a projectile while sailing inbound through the waterway on Saturday. 

Any sustained reduction in tanker traffic could tighten global oil supplies and provide further upward momentum to crude prices. 

Also Read: How To Invest In Crude Oil

Oil Prices Could Rise Further 

Market technicals are also pointing to the possibility of further gains if geopolitical tensions intensify. 

A sustained move higher could increase concerns over inflation and complicate the outlook for central banks, particularly if the disruption lasts for several weeks. 

The latest rally comes despite Brent and WTI being on course for modest monthly declines. Both benchmarks fell more than 4% last week, their first weekly decline in three weeks, as investors had earlier focused on prospects of reopening the Strait and expectations around U.S. monetary policy. 

US Sanctions Add To Market Uncertainty 

The oil market is also monitoring the U.S. administration’s economic response to Iran. 

U.S. Treasury Secretary Scott Bessent told Reuters that Washington is likely to impose new secondary sanctions on Iran every week, with the aim of cutting the country off from the dollar-based financial system. 

Further sanctions could put additional pressure on Iranian oil exports, although the ultimate impact on global supply will depend on enforcement and the ability of buyers and shipping companies to circumvent restrictions. 

At the same time, U.S. President Donald Trump said oil from a recently announced deal with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen close to its lowest level in 44 years. 

What Higher Crude Prices Mean For India 

For India, the renewed rise in crude prices is a key concern because the country relies heavily on imported oil to meet domestic demand. 

A sustained increase in Brent could widen India’s import bill, put pressure on the rupee and increase inflationary risks. It could also squeeze margins for fuel-intensive industries such as airlines, paints, chemicals and transportation. 

On the other hand, upstream oil producers such as ONGC and Oil India could benefit from higher crude prices if the rally persists. 

The direction of oil prices in the coming sessions will ultimately depend on whether the latest U.S.-Iran confrontation remains limited or develops into a broader conflict. For now, the Strait of Hormuz, shipping activity and further military action remain the key variables for global crude markets. 

Source

• oilprice.com