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Oil prices experienced a notable increase on Friday following a confrontation between US and Iranian forces in the strategically significant Strait of Hormuz. The US military reported that it conducted self-defensive strikes in response to what it described as “unprovoked” Iranian attacks on American vessels navigating through the waterway, located south of Iran. In contrast, Iranian state media accused the US of breaching a ceasefire agreement.
Market Reactions to Geopolitical Tensions
The global benchmark for crude oil, Brent, saw its price spike by nearly 3%, reaching close to $103 (£75) per barrel at its peak before retreating to approximately $100. This fluctuation underscores the sensitivity of oil markets to geopolitical events, particularly in a region where over 20% of the world’s oil and gas transit.
Despite the hostilities, US President Donald Trump maintained that the ceasefire between the two nations remains intact. According to Iranian state media, the situation has reportedly returned to “normal.”
Details of the Exchange of Fire
President Trump informed reporters that three US destroyers were involved in the recent skirmish. He claimed that several Iranian small boats were “completely destroyed” and that missiles aimed at US
