Oil prices surge three per cent amid escalating US-Iran tensions

Washington: Oil prices rose more than 3 per cent as the United States and Iran exchanged fresh strikes, renewing fears of disruption in the Strait of Hormuz, a critical route for global energy supplies.

US crude futures climbed 3.4 per cent to $73.87 a barrel by 6.03 p.m. ET, CNBC reported. Brent crude, the international benchmark, gained 3.5 per cent to $78.67.

The New York Times put Brent slightly higher at nearly $79 a barrel. That was about 9 per cent above its pre-war price.

The gains followed another round of US strikes against Iran. The attacks were intended to reduce Tehran’s ability to target civilian mariners and commercial ships in the strait.

“At 5 p.m. ET today, U.S. Central Command forces began launching more strikes against Iran to continue degrading their ability to attack civilian mariners and commercial ships freely transiting the Strait of Hormuz,” CENTCOM said.

“The Commander in Chief has directed the strikes to hold Iranian forces accountable,” it added.

The Wall Street Journal said the operation was the third wave of American attacks in 24 hours. Earlier strikes targeted Iranian missile and air-defence systems, small boats, radars and weapons storage sites around the waterway.

Iranian forces fired at commercial ships around the time of the latest US operation. American aircraft shot down an Iranian cruise missile and a one-way attack drone, CENTCOM spokesman Capt. Tim Hawkins said, according to CNN and The New York Times.

Iran said the strait was closed until further notice. CENTCOM disputed the claim and said ships could continue to transit lawfully.

“Iran does not control the strait. Traffic is flowing,” CENTCOM said, according to CNBC.

The maritime intelligence firm Windward tracked nine ships passing through the strait on Saturday. The Joint Maritime Information Center said the southern route through Omani waters remained open to inbound and outbound traffic. It nevertheless advised mariners to exercise “extreme vigilance”.

Shipping volumes remain sharply below normal. More than 130 vessels used the strait each day before the war, but only 22 made the passage on Thursday, The New York Times reported, citing maritime data company Kpler.

“That confidence eroded very, very quickly,” Kpler’s head of Middle East research, Amena Bakr, told the newspaper. “We’re back to square one when it comes to that situation.”

Fox News reported that the US had hit about 140 Iranian targets in its overnight assault. Iran retaliated against sites across the Gulf. Kuwait said attacks damaged three border posts and an offshore oil platform, injuring one worker.

IANS