Oil Prices Surge as US and Iran Exchange Attacks Over Strait of Hormuz

Oil prices rose sharply after fresh fighting between the United States and Iran increased tensions around the Strait of Hormuz.

Brent crude, the global oil benchmark, climbed more than 4 percent on Monday. Brent futures for September delivery reached $79.17 per barrel at 03:00 GMT, the highest level since June 22.

The rise in prices came as the US and Iran exchanged new military attacks over the strategic waterway.

The US Central Command (CENTCOM) said it carried out dozens of strikes on Iran to reduce its ability to attack ships in the Strait of Hormuz. These strikes came after earlier US attacks on hundreds of Iranian targets.

The US said the earlier strikes followed what it described as Iran’s “blatantly” attacking the Cyprus-flagged container ship MV GFS Galaxy while it was passing through the strait.

“The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it,” CENTCOM said.

“US forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations.”

In response, Iranian forces launched missile and drone attacks on the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain.

Iran’s Persian Gulf Strait Authority repeated that ships using routes not approved by Iran would “not be covered by safe passage guarantees”.

“The consequences arising from transit through unauthorized routes shall be the responsibility of the owner, operator, and vessel commander,” the authority said.

Maritime traffic through the Strait of Hormuz has also dropped sharply as the renewed fighting continues, despite the memorandum of understanding signed by Washington and Tehran last month to end the war.