Oil prices rise as U.S. and Iran fight for control of Strait of Hormuz
Oil prices rose following military strikes between the U.S. and Iran near the Strait of Hormuz, a critical global energy transit route. While Iran claimed to have closed the strait, the U.S. military maintains that traffic remains open.
Why it matters
Conflict in the Strait of Hormuz poses a significant risk to global energy supply chains and market stability.
Oil prices were higher on Monday morning after the U.S. and Iran traded strikes as they contest control of the Strait of Hormuz, one of the most important trade routes for global energy supplies.
International benchmark Brent crude futures with September delivery advanced 1.9% to $77.43 per barrel, paring gains having climbed as high as $79.80 earlier in the session.
U.S. West Texas Intermediate futures with August delivery, meanwhile, were last seen 1.9% higher at $72.79.
The U.S. military launched another wave of strikes Sunday against Iran after hitting 140 targets on Saturday, according to U.S. Central Command . The strikes are in response to an attack by the Islamic Revolutionary Guard Corps on a container ship transiting Hormuz.
Iran responded Sunday with strikes on U.S. military facilities in Jordan, Kuwait, Bahrain and Oman, according to the state news agency Tasnim .
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