Oil prices today rose globally as attacks between the US and Iran were exchanged for the first time in a month, continuing their war. On Sunday, U.S. Central Command confirmed to MS NOW that the U.S. struck two rocket launchers on Iran’s Larak Island. Sunday’s attack was the first publicly acknowledged U.S. strike on Iranian positions since late July, with Iranian state media reporting that Tehran had attacked U.S. bases in Jordan in retaliation.
The U.S. war with Iran remained a key focus for Wall Street. In addition to Sunday’s strikes, the United Arab Emirates said it intercepted an Iranian drone over its waters on Monday. The war has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world’s oil shipments. Oil prices remain high after an initial surge earlier in the war and that has made everything from gasoline to shipped goods more expensive.
Despite the attack and climb in prices, US Treasury Secretary Scott Bessent advised that oil prices will fall back down soon. In an interview with CNBC, in an interview with CNBC, the Treasury Secretary said that he doesn’t understand why they are climbing back up, and expects oil prices to correct. Last week, Bessent outlined plans for more sanctions to punish Iran, and in the days following, the attacks between the US and Iran resumed.
This announcement comes amid current Brent crude oil prices between $90.5 and $91.3 per barrel, reflecting a 3% increase on the day. Additionally, the S&P 500 index fell 0.5%. The Dow Jones Industrial Average fell 333 points, or 0.6%, as of 1:20 p.m ET. The Nasdaq fell 0.4%.