Oil Jumps 3% as Iran Reports Tanker Fire in the Strait of Hormuz and Denies Trump’s Kharg Claim
MIDDLE EAST · ENERGY
Key Facts
—What happened: Oil jumped almost 3 percent as the United States and Iran resumed strikes over the Strait of Hormuz.
—The flashpoint: Iran says a tanker caught fire in the strait, but the cause is disputed and unverified.
—The denial: Tehran called Trump’s video claiming Kharg Island was destroyed “laughable” and likely AI-generated.
—The catch: Only three ships a day are crossing the strait, against about 85 before the war.
—Who pays: Fuel-importing countries face dearer crude again, while oil exporters gain from the price jump.
—What comes next: Iran’s president vows a decisive response to any aggression while insisting Tehran does not seek war.
Brent crude rose 2.95 percent to US$90.70 a barrel as the United States and Iran traded fresh strikes around the Strait of Hormuz. Tehran reported a tanker fire in the waterway and dismissed President Trump’s claim to have destroyed Kharg Island as fiction.
A tanker fire in the strait, and a fog of claims
Iranian sources reported that a tanker caught fire in the Strait of Hormuz, according to Middle East Eye. Iranian outlets attributed the blaze to mine strikes by the Islamic Revolutionary Guard Corps (IRGC), the elite branch of Iran’s armed forces.
That account rests solely on Iranian claims and has not been independently confirmed. Shipping bible TradeWinds separately reported Iran targeting inbound ships, with at least one large crude carrier turning back from a crossing attempt.
State news agency Tasnim added that the IRGC had downed an American MQ-9 surveillance drone over the strait. The Mehr news agency said a US drone crashed in Gulf waters after being hit by air-defence missiles, a claim Washington had not confirmed by Monday afternoon.
What Washington says it hit, and how Iran answered
A US official said American forces struck Iranian launchers on Larak Island on Sunday. The IRGC had been observed preparing to launch rockets carrying sea mines into the strait, the official said.
US Central Command described “limited, precise” action against minelaying forces it called an “imminent threat”. Larak is a small island near the Iranian port of Bandar Abbas, inside the strait.
Iran’s army said it retaliated by striking US bases in Jordan used to support the Larak attack. It also claimed an early-Monday strike on the Al Minhad air base in the United Arab Emirates, which Abu Dhabi dismissed as false.
The UAE defence ministry did say its air force engaged a drone that had come from Iran over its territorial waters. It gave no further details, including whether the drone was shot down.
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Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
The Kharg Island video that was not what it claimed
President Trump posted a video on his Truth Social platform on Sunday showing dramatic explosions on Kharg Island. “Kharg Island destroyed !!! President D.J.T.”, he wrote, hours after military action resumed.
Reuters found no evidence of any attack on the island in the hours after the post. Software that identifies manipulated content indicated the video was likely generated by artificial intelligence.
Tehran mocked the claim. “Trump’s tweets are laughable and conditions in Kharg are calm and appropriate,” said Hamid Bovard, chief executive of the state-run National Iranian Oil Company.
Oil operations on Kharg have not stopped, he told Nournews, an outlet close to Iran’s top security body. Workers are repairing earlier damage and modernising facilities.
The island matters because it handled about 90 percent of Iran’s crude exports before the war. That war began with US and Israeli attacks on Iran on 28 February, and the strait has been effectively blocked since.
What oil did, and why three ships a day is the real story
Brent crude, the global oil benchmark, traded at US$90.70 a barrel on Monday morning. That was up 2.95 percent over 24 hours, according to the tracking service Straits.
The physical picture explains the premium. The International Monetary Fund’s PortWatch service recorded just three transits on the last published day, against a pre-crisis baseline of about 85 a day.
Some 335 vessels were holding position away from berth in the region. The strait normally carries about a fifth of the world’s crude oil and liquefied natural gas shipments.
For Latin America, the arithmetic cuts both ways, as this morning’s analysis set out in detail. Fuel-importing countries pay more within weeks, while crude exporters see the windfall first.
Tehran’s dual message: defiance and a door left open
President Masoud Pezeshkian said Iran was not seeking war but would answer force with force. “We will never remain silent in the face of any aggression,” state media quoted him as saying.
He spoke before leaving for a visit to Kyrgyzstan. It was not clear whether he had seen Trump’s Kharg post at the time.
The twin track is familiar by now. Tehran pairs every retaliation threat with a signal that it prefers an end to the war on negotiated terms.
For now, the market believes the guns more than the words. Oil’s near-3 percent jump on Monday says traders expect the strait to stay shut longer.
Frequently Asked Questions
Why did oil prices jump on 31 August 2026?
The United States and Iran resumed strikes around the Strait of Hormuz, and Iran reported a tanker fire in the waterway. Brent crude rose 2.95 percent over 24 hours to US$90.70 a barrel.
Did the United States destroy Kharg Island?
No evidence supports the claim. President Trump posted a likely AI-generated video, and Iran’s state oil company says operations on Kharg continue normally.
What happened to the tanker in the Strait of Hormuz?
Iranian sources say a tanker caught fire in the strait, attributing it to mines laid by the Revolutionary Guards. The account has not been independently confirmed.
What is Iran’s position now?
President Masoud Pezeshkian says Tehran does not seek war but will respond decisively to any aggression. Iran has kept a negotiated end to the conflict on the table.
How much shipping is getting through the strait?
The IMF’s PortWatch recorded three transits on its last published day, against about 85 a day before the crisis. Roughly 335 vessels are holding position in the region.
Connected Coverage
This is a follow-up to this morning’s US and Iran Trade Direct Attacks as the Strait of Hormuz Empties Again — What Latin America Pays, which maps what the shock costs the region. For the longer money trail, see Latin America’s Oil Money and the US Squeeze on Iran and our report on the strait’s brief reopening.
Sources: Reuters, Middle East Eye, TradeWinds, The New York Times, Tasnim, Mehr, Nournews, IMF PortWatch, Straits.live.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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