Brent crude, the benchmark for two-thirds of global oil supplies, rose 3.34 per cent to $91.04 a barrel on Monday. West Texas Intermediate, which tracks US crude, climbed 3.27 per cent to $86.13 a barrel.
US forces struck Iranian rocket launchers on Larak Island near the Strait of Hormuz on Sunday, according to US officials. Iran's Islamic Revolutionary Guard Corps had been preparing to launch rockets carrying sea mines into the strait when the American military acted, a US official said.
Iran responded with strikes on two US military bases in Jordan, Iranian media reported. Jordan's military said it intercepted eight missiles in the attack.
US President Donald Trump posted a one-line message on Truth Social threatening "Kharg Island being blown to smithereens", without elaboration. Kharg Island, located off Iran's southwestern coast, handles approximately 90 per cent of Iran's oil exports, with a loading capacity estimated at seven million barrels a day.
US Treasury Secretary Scott Bessent told Reuters he expects new secondary sanctions targeting Iran's trading partners to be announced weekly. "We're starting with the banks and we're telling the banks it's not OK to have Iranian money and to aid the regime," Mr Bessent said.
Shipping through the Strait of Hormuz has declined in recent days amid escalation concerns, according to market analysts. The corridor carried roughly one-fifth of the world's energy exports before the conflict intensified.
