It's been a tense weekend around the Strait of Hormuz, and the oil markets are feeling it. On Sunday, Iran hit back at U.S. forces after the American military took out two Iranian rocket launchers on Larak Island, a small but strategically significant piece of land near the world's most important oil chokepoint.
Oil Jumps Past $89 as Iran Strikes Back After U.S. Hits Larak Island
MarketDash
Iran retaliated against U.S. forces after strikes on Larak Island, sending Brent crude above $89 and rattling global markets.
Get Market Alerts
Weekly insights + SMS alerts
Global Markets Slide On Iran Tensions
The escalation spooked investors right out of the gate. Late Sunday, Dow futures fell 75 points, or 0.14%, to 53,509.00, while S&P 500 futures dropped 19.25 points, or 0.25%, to 7,702.75. Nasdaq 100 futures slipped 98.25 points, or 0.33%, to 29,393.50 as of around 8:35 p.m. EDT.
Commodities told a similar story, but with a twist: oil went up, not down. WTI crude rose 0.90% to $84.15 per barrel, while Brent crude advanced 1.08% to $89.05 per barrel. Natural gas futures, on the other hand, fell 1.80% to $2.836 per MMBtu. The U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 99.615, down 0.06% as of around 6:16 a.m. IST.
Asian markets were in the red too. South Korea's KOSPI fell 1.75% to 6,670.12, and Japan's Nikkei 225 declined 1.61% to 65,334.40.
Iran Retaliates After US Strikes Larak Island
Here's what happened: U.S. forces struck two launchers after spotting the Islamic Revolutionary Guard Corps (IRGC) preparing to fire rockets carrying sea mines into the Strait of Hormuz, CNN reported, citing CENTCOM spokesperson Capt. Tim Hawkins.
The IRGC didn't take that lying down. It said it launched missile and drone strikes on two U.S. air bases in Jordan in retaliation for the U.S. attack on Larak Island, state broadcaster IRIB reported. Jordanian authorities said their air defenses intercepted and destroyed eight missiles that entered the country's airspace, with no reported casualties or property damage.
Sunday's strikes marked the first U.S. attacks on Iranian targets since late July.
IRGC Calls US Strike On Larak Island 'Deadly Mistake'
The IRGC had vowed retaliation earlier Sunday after accusing the "US-Zionist enemy" of striking Larak Island, saying the attack caused casualties among Iranian forces and civilians, the report noted. In a statement carried by state broadcaster IRIB, an IRGC spokesperson called the strike a "strategic and deadly mistake" by the Trump administration.
Trump Warns Iran Over New Sea Mines
The renewed fighting has put the Strait of Hormuz front and center in market concerns. This waterway is a critical global energy corridor, with roughly one-fifth of the world's oil shipments typically passing through it. The Trump administration has said CENTCOM cleared sea mines from international shipping routes in the Strait of Hormuz. And Trump warned Tuesday that any vessel laying new mines in the waterway would be "immediately and systematically destroyed."
The latest strikes come as Washington and Tehran remain without active negotiations, while regional efforts to restore maritime traffic through the Strait continue.
Image via Shutterstock/ Below the Sky
More News
Oil Jumps Past $89 as Iran Strikes Back After U.S. Hits Larak Island
Trump's Venezuela Oil Deal Could Ease Iran War Oil Shock, But Analyst Warns: 'It Still Will Take Billions'
Trump Says Venezuelan Oil Will Refill the Strategic Petroleum Reserve, Calls It a 'Gift'
Ted Cruz Defends Trump's 'Mission Accomplished' on Iran: 'Air Force Is in Rubble...Navy Is Sunk'
Trump Says Tariffs Saved the US Auto Industry, Calls Canada 'The Worst' Trade Partner
Elizabeth Warren Says 6 Huge Companies Pocketed $83 Billion in Tax Breaks as Americans Struggled: 'Let That Sink In'
Massie Warns GOP's SAVE Act Push May Be 'Political Messaging' Ahead of Midterms
Trump Threatens FCC Action Against NBC's Kristen Welker Over 'Mixed Results' Comment
Get Market News Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all newsTrump's Venezuela Oil Deal Could Ease Iran War Oil Shock, But Analyst Warns: 'It Still Will Take Billions'
By MarketDash
August 31, 2026
Trump Says Venezuelan Oil Will Refill the Strategic Petroleum Reserve, Calls It a 'Gift'
By MarketDash
August 31, 2026
Ted Cruz Defends Trump's 'Mission Accomplished' on Iran: 'Air Force Is in Rubble...Navy Is Sunk'
By MarketDash
August 31, 2026
Trump Says Tariffs Saved the US Auto Industry, Calls Canada 'The Worst' Trade Partner
By MarketDash
August 31, 2026
Elizabeth Warren Says 6 Huge Companies Pocketed $83 Billion in Tax Breaks as Americans Struggled: 'Let That Sink In'
By MarketDash
August 31, 2026
Massie Warns GOP's SAVE Act Push May Be 'Political Messaging' Ahead of Midterms
By MarketDash
August 31, 2026
Trump Threatens FCC Action Against NBC's Kristen Welker Over 'Mixed Results' Comment
By MarketDash
August 31, 2026