Oil prices jumped Monday morning after US forces struck two Iranian rocket launchers and Iran retaliated by attacking US bases in Jordan and US military targets at the United Arab Emirates.
The attacks mark the resumption of hostilities between the two countries, and with it concerns of crude supply stability and heightened inflationary pressure.
West Texas Intermediate October crude oil futures, the US benchmark, climbed 3.2% to $86 per barrel. November Brent oil futures, the international benchmark, jumped 3.2% to $90.89 a barrel.
Comex gold December futures edged down 0.9% to $4,490.10 per ounce, as expectations rise for the US Federal Reserve to raise interest rates in September after Fed Chair Kevin Warsh spoke at the Jackson Hole symposium last Friday.
The resumption of hostilities between the US and Iran also raised inflation concerns.
In agricultural commodities, December wheat futures fell 2.6% to $7.63 per bushel, while canola futures for November edged down 0.7% to C$818 per tonne.