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Oil jumps 4% as US strikes on Iran rekindle supply fears
Brent climbed above $79 a barrel in Asian trading, its highest level in more than three weeks, as analysts warned shipping in the Strait of Hormuz may be disrupted.
Oil prices rose sharply in Asian trading Monday, with Brent Crude futures up about 4% to trade above $79 per barrel. The move followed a weekend of intense U.S. strikes on Iran and Iran firing missiles at U.S. allies in the region, according to OilPrice.
Market anxiety centered on potential disruption to crude flows through the Strait of Hormuz. OilPrice reported that Iran claimed the strait is closed to traffic again, while the United States said it remains open, and noted that tensions could take longer to ease than in prior short-lived flare-ups.
OilPrice also cited analysis from ING and ANZ that the risk is escalation to a wider conflict that could target neighboring countries and energy infrastructure. ING’s commodities strategists said escalation has already slowed vessel transits, turning activity through the strait into a trickle.
The article listed prices across petroleum-related contracts, including WTI trading around $74.5 a barrel and heating oil and gasoline also rising during the session. It contrasted the gains in crude with a decline in natural gas, which was down on the day.
Latest closeWTI crude $71.51 ▼0.8%|Brent $76.00 ▼0.4%|Nat gas $2.948 ▼2.1%