Oil prices rise by more than $2

The new US attack on Iran has had an impact on the international oil market. The attack on Larak Island in the Strait of Hormuz and the subsequent retaliatory attack by Tehran have sparked renewed tensions in the Middle East. 

Reuters reported that Brent crude prices rose $2.21, or 2.51 percent, to $90.31 per barrel at 10:36 a.m. Bangladesh time on Monday (August 31). Al Jazeera reported that oil prices rose $1.77, or about 2 percent, twice on the same day. The price later rose further to $90.31.

At the same time, the price of US West Texas Intermediate crude rose by $1.83, or 2.19 percent, to trade at $85.23 per barrel. 

Reuters says that rising tensions in Hormuz have raised concerns about supply, sending oil prices higher.

However, the big question for the market is how long the situation will last even if oil prices rise. If the conflict is brought under control quickly, prices could fall again. Conversely, if the supply system in the Strait of Hormuz is disrupted for a long time, prices could take a stronger position above $90 per barrel.