Oil prices climbed on Monday, marking the biggest gain in three weeks. Brent crude jumped more than 3% as energy markets were jolted by the resumption of hostilities in the U.S.-Iran conflict for the first time in almost a month.
The surge followed actions by the U.S. military on Sunday, August 30, when forces struck two Iranian rocket launchers on Larak Island. These launchers were preparing to send mines into the waterway near the Strait of Hormuz, which serves as a key route for global oil shipments.
Investors are now concerned about prolonged disruptions to energy flows through the Strait of Hormuz as tensions flare once again in the Middle East. Market participants are also weighing a potential U.S. rate hike, while the average U.S. gasoline price has remained 37 percent higher since the war began.