Oil prices rise after US, Iran trade fire in Strait of Hormuz

Oil prices extended their gains on Monday as renewed strikes between the US and Iran on ships transiting the Strait of Hormuz raised concerns of prolonged supply disruptions, according to Reuters.

Brent crude futures climbed 0.54 percent to $96.80 a barrel early in the morning, while West Texas Intermediate (WTI) crude rose 0.72 percent to $92.14 a barrel, the report said.

The gains come after Iran claimed attacks on three US-affiliated vessels and three oil tankers using an “unauthorised” route in the Strait of Hormuz. Tehran said the strikes were in response to US attacks that destroyed three Iranian crude oil tankers.

Since the US-Israel war on Iran began on February 28, the price of Brent crude has risen more than 30 percent.

According to Mehr News Agency (MNA), the report by Reuters highlighted the impact of the ongoing conflict on global oil markets. The Strait of Hormuz is a critical chokepoint for global oil shipments, and any disruption there can significantly affect prices. The latest incidents mark an escalation in the maritime dimension of the conflict, with both sides targeting oil-related vessels. Analysts suggest that continued hostilities could keep prices elevated, adding to inflationary pressures worldwide.