Oil jumps as U.S. strikes Iranian targets near Strait of Hormuz
U.S. strikes on Iranian targets near the Strait of Hormuz sent Brent above $95 and WTI over $90, while USO and BNO rallied and defense contractors slipped.
The Strait of Hormuz crisis reignited Tuesday after the U.S. military launched a fresh wave of strikes on Iranian targets near the critical waterway, hours after two oil tankers came under fire in the Strait.
U.S.
Central Command confirmed the strikes in a social media post, and the Pentagon had reportedly been weighing a limited-strike plan meant to stop Iran from rebuilding radar and missile systems used to threaten shipping through the corridor, per CNBC.
USO is moving with the spike in oil.
See the real-time price action here.
The latest escalation traces back to Monday night, when the Saudi-flagged VLCC Sidr and the Liberian-flagged Senegal Prosperity were struck by unknown projectiles minutes apart while transiting outbound from the Strait, No casualties were reported.
Trump Confirms Strikes, Warns of Further Action President Donald Trump confirmed the retaliation directly on Truth Social, writing: “The United States is, as we speak, striking Iranian Targets near the Strait of Hormuz.
The strikes are large and powerful, and in retaliation for the Iranians’ failed attempt at adding sea mines to the Strait… and the Iranians shooting eight missiles, all successfully knocked down, at our Military Base in Jordan.” He warned Tehran of further consequences: “If the failed Nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!” BREAKING: President Trump says the US is striking Iranian targets near the Strait of Hormuz and warns Iran not to retaliate.
Brent crude oil prices are nearing $95/barrel. pic.twitter.com/pKvkKeFLUR — The Kobeissi Letter (@KobeissiLetter) September 1, 2026 Markets React Brent crude oil futures jumped to $95.01 a barrel Tuesday and WTI futures climbed above $90, the highest level in over a month, according to Trading Economics.
Traders rotated hard into crude-linked exposure — USO and BNO leading the tape — with the United States Oil Fund (NYSE: USO ) up 5.27% and shares of the United States Brent Oil Fund (NYSE: BNO ) up 5.11% at the time of publication.
Defense prime contractors traded in the opposite direction, a reminder that “escalation trade” doesn’t automatically mean broad-based defense strength once a shooting war is already priced in and headline risk cuts both ways.
Lockheed Martin (NYSE: LMT ) slipped 3.26%, RTX Corp. (NYSE: RTX ) fell 1.42% and Northrop Grumman (NOC) declined 1.61%, according to data Pro.
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