U.S. And Iran Trade Strikes Again. Oil Prices Soar.

Oil prices are soaring on Monday after hostilities between the U.S. and Iran flared up again during the weekend.

Brent crude, the international benchmark, climbed more than 5.50% and stood just below $91 a barrel at 8:37 a.m. ET, while West Texas Intermediate, the U.S. benchmark, gained 3.47% and clocked in at $86.29 at the same time.

Hostilities flared up again during the weekend after U.S. forces said they targeted two Iranian rocket launchers on Larak Island, claiming Iranian forces were getting ready to launch rockets carrying sea mines into the Strait of Hormuz.

"Last week, CENTCOM completed clearing sea mines from the strait's international shipping routes. U.S. forces are monitoring the area closely and remain prepared to protect the free flow of commerce through this essential waterway," U.S. Central Command spokesperson Tim Hawkins told CNBC.

Trump then threatened Kharg Island, from which about 80% of Iran's oil export are shipped, sharing an AI-made video with a caption claiming it was "being blown to smithereens."

Iran, in turn, launched missiles at U.S. bases in Jordan, local media claimed. Forces said they "destroyed the technical and repair infrastructure, as well as the enemy fighter deployment sites."

Iranian forces also said on Monday that a supertanker was disabled and caught fire after hitting two naval mines. The country's foreign ministry also said the U.S. bears "full responsibility" for the escalation that may follow the initial strikes.

At the same time, Treasury Secretary Scott Bessent said the U.S. will further escalate economic pressure against Iran this week.

Speaking to The Associated Press, Bessent said the Trump administration plans to sanction another bank with ties to Tehran.

"This is going to be financial violence if we have to," he said. "We are showing people that we know who you are, you know who you are, and this has got to stop."

Bessent unveiled the plan last week, noting that the U.S. would be imposing secondary sanctions on those "enabling" Iran to maintain its economic activity.

Bessent said the plan is called "Operation Economic Outcast" and appeared to say China could be reached by the measures.

"We want to make clear here today that no one is above the reach of U.S. sanctions," he said when asked if the measures could impact Chinese banks or the Trump administration would refrain from doing so to preserve relations with Beijing.

The Associated Press noted that, for now, the administration has mostly issued warnings against financial entities. Speaking about China, Bessent noted that "all options are on the table" and rejected it's being particularly cautious about Beijing, saying it is a "completely false narrative that the media picked up on."