Oil prices surged more than 3% on Monday after renewed military strikes between the United States (US) and Iran reignited concerns over energy shipments through the Strait of Hormuz.
Brent crude futures were up $2.67, or 3.51%, to $78.68, US West Texas Intermediate crude was up $2.48, or 3.47%, to $73.89 a barrel.
“Shipping operators are adopting a cautious approach and inbound movements have slowed under heightening security concerns,” ANZ analysts said.
Fresh US and Iranian strikes over the weekend fuelled fears of a renewed escalation. Tehran targeted US facilities across the Gulf on Sunday and said it had again closed the Strait of Hormuz.
Iran’s Revolutionary Guards said on Monday they had attacked US military bases in Kuwait and Bahrain.
Before the conflict began in late February, the Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies.
Vessel traffic through the strait fell to a five-week low on Sunday, ship-tracking data showed. Six vessels transited the strait on Sunday, according to Kpler.
–Reuters–
