Oil Prices Increase Following US-Iran Exchange in Strait of Hormuz
Oil prices rose on Friday morning during Asian trade after the United States and Iran exchanged fire in the strategically important Strait of Hormuz waterway.
The US military reported intercepting what it described as "unprovoked" Iranian attacks involving missiles, drones, and small boats. In response, US forces carried out self-defence strikes as their ships were departing the Gulf through the strait.
The global oil benchmark Brent crude increased by 2.3% to reach $102.40 (£75.53) per barrel, while US-traded crude rose by 2.1% to $96.80.
This escalation further threatens the US-Iran ceasefire, which President Donald Trump extended indefinitely on 21 April to provide additional time for peace negotiations.
Earlier this week, President Trump stated that the ongoing war, which began on 28 February following US and Israeli attacks on Iran, would be "over quickly" as Washington seeks to establish a framework for more detailed talks with Tehran.
Energy prices have surged since the conflict's inception after Iran threatened to target ships passing through the critical Strait of Hormuz trade route in retaliation for the US-Israeli strikes.
More than one-fifth of the world's oil and gas shipments typically transit this vital waterway.
