Key Takeaways
- Brent crude futures surged 3.26% to $90.97 a barrel, while West Texas Intermediate (WTI) jumped 3.49% to $86.31 following renewed military hostilities in the Middle East.
- A commercial tanker was struck by three unknown projectiles 17 nautical miles east of Khasab, Oman, while transiting outbound through the Strait of Hormuz on August 31, 2026.
- The U.S. military launched its first strikes on Iranian territory in over a month, targeting IRGC rocket launchers on Larak Island to prevent imminent minelaying threats.
- Maritime traffic remains severely depressed, with only seven vessels attempting to transit the Strait of Hormuz over the weekend compared to a pre-war average of dozens daily.
The United Kingdom Maritime Trade Operations (UKMTO) reported on Monday that a tanker was struck by three unidentified projectiles while transiting outbound through the Strait of Hormuz. The incident occurred approximately 17 nautical miles east of Khasab, Oman, marking the third such attack on commercial shipping in the vital waterway within a single week. While no casualties or environmental damage were reported, the vessel's identity and flag remain unconfirmed as authorities continue their investigation.
This latest maritime strike coincides with a significant escalation in the six-month-old conflict between the United States and Iran. On Sunday, U.S. Central Command (CENTCOM) conducted "limited, precise action" against Islamic Revolutionary Guard Corps (IRGC) forces on Larak Island. The strikes targeted two launchers that U.S. officials claimed were being prepared for minelaying operations, just days after the U.S. had declared the international traffic separation scheme free of sea mines.
Energy markets reacted sharply to the breakdown of a weeks-long lull in direct military engagement. Brent crude (BRENT) climbed back above the psychologically significant $90 per barrel mark, as traders weighed the risk of a sustained campaign against energy infrastructure. Major energy producers saw gains amid the volatility, with Exxon Mobil (XOM) rising 2.7% and Chevron (CVX) gaining 2.1% during Monday's trading session.
The geopolitical friction has crippled commercial shipping through the world's most important oil chokepoint. According to market intelligence from Windward, visible commodity vessel traffic through the strait fell to just five ships a day over the weekend. The International Maritime Organization (IMO) reports that at least 70 attacks on international shipping have been verified since the conflict began in February, leaving approximately 400 merchant vessels unable to depart the Persian Gulf safely.
In retaliation for the Larak Island strikes, Iranian state media reported that the IRGC launched ballistic missiles at two U.S. air bases in Jordan, claiming "heavy damage." While the White House has not confirmed the extent of the damage, the exchange has effectively ended hopes for a diplomatic reopening of the Strait, through which roughly 20% of global oil supply typically flows. Analysts at UBS (UBS) noted that market focus has shifted entirely to whether the situation continues to escalate or if a new de-escalation framework can be established.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.