Energy equities jumped in premarket trading on Monday as oil prices rose more than 3% following new military strikes between the U.S. and Iran in the Strait of Hormuz, a critical chokepoint for global crude flows.
Brent crude futures advanced 3.5% to $91.20 per barrel by 06:06 GMT, while West Texas Intermediate climbed 3.5% to $86.30 per barrel. The gains reflected heightened supply disruption risks after U.S. forces struck two missile launchers on Larak Island in the Strait of Hormuz on Sunday, marking the first confirmed U.S. attacks against Iran since late July.
Major U.S. energy producers led the sector’s advance. Chevron rose 1.7%, Exxon Mobil gained 1.5%, and Occidental Petroleum climbed 1.8%. Service providers Halliburton and SLB each added 2.5% and 1.7%, respectively, while refiners Marathon Petroleum and Phillips 66 edged up 0.6% and 1.0%.
Iran’s Revolutionary Guard responded by claiming to have targeted two U.S. air bases in Jordan, according to state media reports on Monday. The escalation followed a social media post by President Trump on Sunday alleging that Iran’s Kharg Island energy hub was being “completely destroyed,” accompanied by an AI-generated video. Iran denied the strike, stating that oil operations on the island continued normally, and no independent verification of the attack has emerged.
Diplomatic efforts to de-escalate the conflict remain stalled as international mediators attempt to reopen the Strait of Hormuz, which previously handled about one-fifth of global oil supply before fighting resumed in late February. U.S. Treasury Secretary Scott Bessent told Reuters on Sunday that Washington plans to impose new secondary sanctions against Iran on a weekly basis, intensifying economic pressure amid the military standoff.
