Breaking News: Oil Prices Surge Amid Strait of Hormuz Clashes
Oil prices have increased following clashes between the United States and Iran in the Strait of Hormuz. Brent crude futures rose by 7.5 percent during trading on Thursday before slightly decreasing as Asian markets opened on Friday.
As of 03:00 GMT, Brent crude was priced at $101.12 per barrel, down from a high of $103.70 earlier in the day. The rise in prices coincided with renewed hostilities despite a ceasefire announced on April 7.
The U.S. Central Command (CENTCOM) reported that it launched strikes on Iran after three U.S. Navy destroyers were attacked by Iranian missiles, drones, and small boats. In response, Iran accused the U.S. of violating the ceasefire by targeting an Iranian oil tanker and civilian areas, including Qeshm Island.
Shipping traffic in the strait has been severely impacted since late February due to threats of Iranian attacks on oil tankers. Brent prices have risen about 40 percent since the onset of the conflict, amid an estimated shortfall of 14.5 million barrels per day.
Asian stock markets opened lower on Friday, reflecting the heightened tensions.
