Oil Prices Rise After US Strike on Iranian Island

Oil prices surged more than $1 a barrel on Monday, August 31, 2026, following a U.S. military strike on an Iranian island in the Strait of Hormuz and subsequent retaliation from Tehran, extending a regional conflict into its sixth month. The escalation heightened fears of further supply disruptions in a critical global energy corridor. The United States said on Sunday, August 30, that its forces had struck two rocket launchers on Iran's Larak Island in the Strait of Hormuz. This marked the first known American strikes on Iranian territory since late July. In response, Iran's Revolutionary Guard Corps attacked two U.S. air bases in Jordan, according to Iranian state media reports. The U.S.