Military strikes between the U.S. and Iran raise concerns over supply risks through the critical Strait of Hormuz.
Oil prices climbed more than 2% as renewed U.S.-Iran military strikes heightened fears of disruptions in the Strait of Hormuz, a key chokepoint for global energy shipments. Brent crude rose $1.67 to $77.68, while U.S. WTI gained $1.59 to $73.00 a barrel.
Before the conflict escalated in late February, the strait handled roughly 20% of daily global oil and LNG supplies. Recent attacks prompted shipping operators to adopt a cautious stance, with vessel traffic dropping to a five-week low on Sunday.
Analysts warned that reduced inbound tanker movements could pressure production, adding a risk premium to prices amid heightened security concerns. The strikes cast doubt on a recent interim agreement aimed at reopening the strait.