Oil climbs as U.S.-Iran clashes rattle Hormuz, raise supply fears

Oil prices surged over 1% on Friday, snapping a three-day losing streak as renewed U.S.-Iran clashes raised fears about the Strait of Hormuz’s stability and the chances of reopening the crucial waterway. Brent crude futures rose to about 101.47 a barrel, up 1.41%, while U.S. West Texas Intermediate gained around 1.18% to $95.93 a barrel as trading moved through the early hours. Prices had initially jumped more than 3% at the open before cooling a bit. Markets had been hopeful earlier in the week that a broader deal to halt hostilities and reopen the strait was close, but those prospects looked less certain as the clash intensified and the broader dispute over Iran’s nuclear programme remained unresolved. U.S. and Iranian forces exchanged fire in the Strait of Hormuz; Iran accused Washington of breaching a ceasefire while Washington said its actions were retaliatory after Iranian forces fired on U.S. vessels. The Strait of Hormuz is a vital route for global oil and gas shipments. Even with Friday’s rebound, both benchmarks were on track to end the week around 6% lower as investors weighed potential disruptions to flows against hopes for a settlement. There were ongoing claims and counter-claims about attacks on vessels and targets in the region, underscoring how geopolitics can keep oil markets volatile.

#OilPrices #Hormuz #IranUS