Iran Crisis Drives Oil Prices Sharply Higher

Here's what it's all about

• The price of oil has risen by more than four percent following another wave of U.S. attacks against Iran.
• This is due to the ongoing tensions surrounding the Strait of Hormuz, which Iran intends to keep closed for the time being.
• Analysts expect prices to continue rising as long as uncertainty surrounding shipping persists.

Summary created with

Oil prices rose sharply on Monday following another wave of attacks by the U.S. military. A barrel (159 liters) of Brent crude for September delivery rose 4.46 percent to $79.40 in early trading.

It was already the fourth wave of U.S. attacks since hostilities flared up again early Wednesday morning.

The wave of attacks is over and struck dozens of targets with precision-guided munitions, the U.S. regional command Centcom announced early this morning Central European Time on the online platform X. Centcom emphasized that the Strait of Hormuz is of vital importance to global trade and is not controlled by Iran. U.S. forces stand ready to defend the freedom of civilian shipping—including against “Iran’s unjustified aggression, harassment, threats, and arbitrary statements.”

Iran had announced on Sunday that the strait would be closed “until further notice,” while the Islamic Republic’s armed forces carried out drone and missile attacks on U.S. allies in the Middle East, including Jordan and Qatar. In addition, Kuwait reported that an offshore drilling platform had been struck and damaged.

While the latest developments are escalating, they remain “well below a state of open war,” Saul Kavonic, senior energy analyst at MST Marquee, told the Bloomberg news agency. Oil prices are likely to continue rising slightly as long as the attacks persist and passage through the Strait of Hormuz remains disrupted as a result.

During the first weeks and months of the conflict, the price of oil had risen significantly. At times, a barrel of Brent crude had cost just over $126.