Oil prices rose more than 3% at the start of the week's trading after military escalation between the United States and Iran raised growing concerns about the security of energy supplies through the Strait of Hormuz, one of the world's most important oil passages.

Brent crude for September delivery rose 3.75% to $78.86 a barrel, while US West Texas Intermediate crude for August delivery rose 3.65% to $74.02 a barrel.

The gains came hours after the US Central Command announced a new round of strikes against targets inside Iran, which it said aimed to undermine Tehran's ability to attack commercial vessels in the Strait of Hormuz.

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In response, Iran said the US strikes thwarted diplomatic efforts and accused Washington of violating a memorandum of understanding between the two sides, while Iranian state television reported hearing explosions in Bandar Abbas, Sirik, Qeshm Island, and the city of Jask.

The US military also announced that Iranian Revolutionary Guard forces fired on commercial vessels in the Strait of Hormuz, confirming it intercepted an Iranian cruise missile and a drone during the attack, while Washington stressed the continuation of its operations to protect international navigation.

The escalation of the military confrontation and fears of disruption to navigation through the Strait of Hormuz increased pressure on energy markets, as investors await possibilities of the conflict expanding and its impact on global oil supplies.