FX.co ★ Oil Rises as US Strikes Iranian Rocket Launchers

Crude oil rose toward $85 per barrel on Monday, beginning the week on a stronger footing after the US military struck Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz. It was the first such attack in more than a month. US forces said they are closely monitoring the vital waterway and stand ready to ensure the continued free flow of commercial shipping.

The US had last launched missiles at Iranian targets in late July, but has since pivoted toward exerting economic pressure through sanctions in an effort to push Tehran back to the negotiating table. On Friday, an Iranian official said that resuming diplomacy with Washington “isn’t impossible” after what were described as constructive talks with Qatar, which is acting as a mediator.

Despite the lack of a formal peace agreement between the US and Iran, an estimated 6 to 8 million barrels of crude oil are still passing through the Strait of Hormuz each day, according to recent reports.