Tensions in the Strait of Hormuz push oil prices higher

Oil prices continue to rise as tensions over the Strait of Hormuz escalate and US President Donald Trump’s ultimatum looms. He has threatened harsh attacks on Iranian infrastructure if Tehran does not resume shipping in the strategic strait, through which around 20 per cent of the world’s oil supply passes.

Markets are reacting noticeably, with Brent crude up 1.6 per cent to $111.51 a barrel, while US WTI jumped an even bigger 3.1 per cent to $115.86.

Iran, however, rejects the ceasefire proposal and insists on a permanent end to the conflict, which analysts say is keeping the situation extremely tense. Attacks continue in the region, and damage to energy facilities has raised fears that supply disruptions could last for months.

Further incidents, including an attack on a terminal handling about 1.5 per cent of global oil supplies, are exacerbating the situation.

(reuters, pir)