SINGAPORE — Oil prices rose sharply on Monday as renewed military exchanges between the United States and Iran heightened concerns over shipping disruptions through the Strait of Hormuz, a key route for global energy supplies.
Brent crude futures climbed more than 3% during trading, rising to around $78.48 a barrel, while U.S. West Texas Intermediate crude futures also gained more than 3% to about $73.76 a barrel, according to market data cited by Reuters. Prices earlier rose more than 4% as investors assessed the risk that escalating tensions could further restrict oil and gas movements through the waterway.
The price increase followed renewed strikes between Washington and Tehran over the weekend. Iran said it had closed the Strait of Hormuz after a vessel attempted to use what it described as an unauthorized route, while U.S. President Donald Trump said the waterway remained open to commercial traffic. The competing claims could not be independently reconciled immediately.
The Strait of Hormuz, located between Iran and Oman, is one of the world’s most important energy chokepoints. Before the latest conflict, about one-fifth of global oil and liquefied natural gas supplies passed through the route, according to market analysts and industry data.
Shipping activity through the strait has slowed as operators assess security risks. Data analyzed by shipping sources showed tanker traffic falling to its lowest level in about two months, with some vessels reducing visibility by switching off tracking systems.
Analysts said the market was pricing in a higher risk premium because of uncertainty over future shipments. Giovanni Staunovo, an analyst at UBS, said the focus remained on the number of inbound tankers because reduced traffic could affect supply flows and increase disruption risks.
The United States and Iran have issued conflicting statements over responsibility for the latest escalation. Tehran said its actions were in response to U.S. military activity, while Washington has said it is seeking to maintain maritime security and protect commercial shipping.
Oil markets had previously eased after a temporary U.S.-Iran agreement helped improve expectations for energy flows through the Gulf. The International Energy Agency said earlier in July that increased Gulf exports had supported a recovery in supply, but warned that renewed hostilities could affect the outlook.
Traders were monitoring further developments in the Gulf, including shipping movements and official statements from governments involved, as markets awaited confirmation of whether commercial traffic through the Strait of Hormuz would continue normally.
