DUBAI, United Arab Emirates — Oil prices climbed above $90 a barrel Monday after the United States and Iran exchanged fresh military strikes, raising new fears that the conflict could disrupt shipping and energy supplies through the Strait of Hormuz.
The latest round of fighting began when U.S. forces struck Iranian positions on Larak Island, near the strategic port of Bandar Abbas. U.S. officials said the targets included equipment that could have been used to deploy sea mines in the Strait of Hormuz, one of the world’s most important oil shipping routes.
Iran responded by launching attacks toward U.S. military facilities in Jordan. Most of the incoming missiles were intercepted, and there were no immediate reports of major damage. Iranian authorities, however, said the American strike on Larak Island killed two people and injured others.
The renewed fighting quickly unsettled global markets. Brent crude, the international oil benchmark, rose to around $90 a barrel and briefly moved above $91, while U.S. crude prices also climbed. Investors worry that any prolonged disruption in the Gulf could push fuel and transportation costs higher around the world.
At the center of those concerns is the Strait of Hormuz, the narrow waterway between Iran and Oman. Roughly one-fifth of the world’s oil normally passes through the strait, making even a short disruption capable of affecting energy prices far beyond the Middle East.
Shipping companies have already been operating cautiously because of the risk of missile attacks, drones and naval mines. Reports that a tanker was struck while entering the waterway over the weekend added to concerns about the safety of commercial vessels in the area.
Despite the renewed attacks, Iranian President Masoud Pezeshkian said his government was still open to diplomacy. “Continuing the war is in no one’s interest,” he said, although efforts to restart meaningful negotiations with Washington have so far made little progress.
Tensions were further heightened when U.S. President Donald Trump posted an AI-generated video that appeared to show Iran’s Kharg Island oil hub being destroyed. U.S. officials said American forces had not attacked Kharg, while Iranian authorities said operations there were continuing normally.
Kharg Island is especially important because it handles most of Iran’s crude exports. Any real attack on the facility could sharply reduce Iranian oil shipments and trigger another jump in global prices. The broader conflict has already disrupted trade, displaced civilians and increased pressure on governments across the region.
For consumers thousands of miles from the Gulf, the consequences could still be felt through higher petrol prices, more expensive flights and rising shipping costs. With neither side showing signs of backing down completely, markets are now watching closely to see whether the latest exchange ends quickly or develops into another sustained round of fighting.
