Oil prices fall after hitting five-month highs

Oil prices fall on Monday after hitting a five-month high as markets assess the impact of U.S. airstrikes on Iran and possible disruption to oil and gas transit through the Strait of Hormuz.

Brent crude drops 70 cents, or 0.9%, to $76.31 a barrel by 10:46 a.m. ET, while U.S. West Texas Intermediate crude falls 76 cents, or 1%, to $73.09.

Earlier in the session, Brent and WTI reach $81.40 and $78.40, respectively, before fluctuating through the European trading day.

President Donald Trump says the U.S. has "obliterated" Iran’s key nuclear sites in weekend strikes, joining Israel’s military campaign as Tehran vows retaliation. Israel launches new strikes on Monday, including one on the Fordow nuclear site.

Tracking data shows two supertankers make U-turns near the Strait of Hormuz after the U.S. attack. About 20% of the world's oil supply passes through the strait. Iran, OPEC’s third-largest oil producer, warns that the attacks expand the range of targets for its military.

Trump posts on Truth Social urging the Department of Energy to push oil production, saying “drill, baby, drill.”

Iraq’s Basra Oil Company says foreign firms including BP, TotalEnergies, and Eni evacuate some staff from oilfields.

Despite the conflict, there is no immediate supply disruption. HSBC expects Brent to rise above $80 if risk in the Strait increases but fall back if no blockage occurs.