Washington: Global oil prices jumped more than three per cent after the United States and Iran exchanged fresh attacks, intensifying concerns over the movement of energy supplies through the strategically important Strait of Hormuz.
Brent Crude Approaches $79
Brent crude, the international oil benchmark, rose by more than $2 to trade close to $79 per barrel. US West Texas Intermediate crude also gained over three per cent and moved above $73 per barrel.
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The sharp increase followed a decline in prices at the end of the previous trading week, when markets had expected shipping conditions in the region to improve.
Fresh Strikes Renew Supply Concerns
The United States launched another round of attacks against Iranian military targets, saying the action was aimed at limiting Tehran’s ability to threaten civilian sailors and commercial vessels.
Iranian forces reportedly responded with attacks on ships and targets across the Gulf region. The renewed violence has raised fears that commercial traffic through the Strait of Hormuz could face further disruption.
Shipping Traffic Remains Below Normal
Iran claimed that the strait had been closed, while US authorities rejected the statement and maintained that vessels could legally continue using the route. However, ship-tracking information indicated that traffic remained significantly below normal levels.
Only a small number of vessels were reported to have crossed the waterway on Sunday, reflecting growing caution among shipping companies.
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Why the Strait of Hormuz Matters
The Strait of Hormuz is one of the world’s most important energy corridors, carrying a major share of internationally traded crude oil and petroleum products.
Any prolonged interruption could reduce global supplies and place additional pressure on fuel prices, transportation costs and inflation. Market movements will now depend largely on whether the confrontation escalates further or diplomatic efforts restore confidence among oil traders and shipping operators.
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