Oil prices settled more than 2.5% higher on Monday as renewed military action between the United States and Iran revived concerns over global supply disruptions and stalled progress toward reopening the Strait of Hormuz. Brent crude gained $2.39, or 2.71%, to settle at $90.49 per barrel, while WTI rose $2.36, or 2.83%, to $85.76. Brent reached an intraday high of $91.52, its highest level since August 25.

The rally followed an exchange of military strikes between the U.S. and Iran, marking the first direct escalation between the two sides in roughly a month. The renewed conflict forced traders to rebuild a geopolitical risk premium as prospects for a near-term de-escalation weakened.

Supply concerns remain centered on the Strait of Hormuz, where mediation efforts to restore normal shipping traffic have stalled. Visible commodity vessel traffic through the waterway averaged just five vessels per day over the weekend, although some Gulf oil exports continue to move through the strait, limiting the upside in prices.

Meanwhile, U.S. Strategic Petroleum Reserve inventories fell by approximately 3.1 million barrels last week to 286.6 million barrels. The Trump administration has indicated it intends to use Venezuelan oil secured through a potential agreement to begin replenishing the SPR, which has fallen to near its lowest level in more than four decades.

With direct military action resuming and Hormuz negotiations showing little progress, oil markets have once again shifted toward pricing a higher near-term risk of supply disruption.