The strikes increased concerns over potential disruptions to shipping through the Strait of Hormuz. Although Iran claimed it had closed the vital waterway, US officials said the route remains open.
Brent Crude Oil Price Climbs
Brent crude oil price climbed sharply on Monday after the latest military strikes between the United States and Iran reignited concerns over potential disruptions to energy shipments through the Strait of Hormuz.
Brent crude futures rose 3.3% to $78.51 per barrel after briefly surging around 5% earlier in the session. Meanwhile, US West Texas Intermediate (WTI) crude gained 3.3% to trade at $73.78 per barrel as traders reacted to the escalating geopolitical tensions in the Middle East.
Oil prices (Source: Trading Economics)
The latest rally followed another round of US military strikes against Iran over the weekend. According to US Central Command, American forces targeted dozens of Iranian positions after the Islamic Revolutionary Guard Corps attacked a commercial container ship transiting the Strait of Hormuz.
Iran responded by launching strikes against US military facilities in Jordan, Kuwait, Bahrain, and Oman. Iranian state media also claimed the Revolutionary Guard closed the Strait of Hormuz until further notice. This quickly raised fears of possible disruptions to global oil supplies.
However, US officials rejected those claims. CENTCOM stated that the strategic waterway is still open to all vessels seeking lawful passage and clarified that US forces are positioned to ensure freedom of navigation despite what it described as Iranian threats and declarations.
President Donald Trump also said the Strait of Hormuz is open during an interview that was broadcast on Sunday. Maritime intelligence firm Windward reported that nine vessels successfully transited the waterway on Saturday, while the Joint Maritime Information Center confirmed that the southern shipping corridor through Oman's territorial waters still operates for both inbound and outbound traffic.
Despite shipping activity continuing, maritime authorities warned that the security situation is severe. Civilian vessels have been advised to exercise extreme caution while military operations continue in the region. The latest US strikes were the fourth round of attacks against Iranian targets in the past week.
The latest conflict stems from disagreements over how shipping through the Strait of Hormuz should resume under an interim peace agreement that was signed between Washington and Tehran on June 17. While traffic started recovering after the agreement, the latest exchange of military action has once again raised concerns over the stability of one of the world's most important energy corridors.
