Oil Prices Increase as Iran Attacks US Warship at Hormuz

Oil Prices Increase as Iran Attacks US Warship at Hormuz

Oil prices rose in the global commodity market on Friday as escalating tensions between the US and Iran in the Strait of Hormuz renewed concerns about global energy supply security.

International benchmark Brent crude traded at $100.72 per barrel, up around 0.65% from the previous close. US benchmark West Texas Intermediate (WTI) increased about 0.47% to $95.19 per barrel, compared with $94.81 in the previous session.

Reports of alleged clashes and attacks in the region, one of the world’s most critical energy transit corridors, heightened market concerns over possible supply disruptions.

Iranian naval forces allegedly attacked three US warships in the Strait of Hormuz, while the US military reportedly carried out airstrikes targeting Iran’s Qeshm Port and Bandar Abbas.

Ebrahim Zolfaqari, spokesperson for Iran’s Khatam al-Anbiya Central Headquarters, which oversees wartime operations, said the US military violated a cease-fire by attacking an Iranian oil tanker.

Zolfaqari also alleged that US forces targeted another vessel entering the Strait of Hormuz off the coast of Fujairah in the United Arab Emirates.

For its part, the US Central Command (CENTCOM) claimed that Iran carried out “unprovoked” attacks on US naval assets transiting the Strait of Hormuz and that American forces responded “in self-defense.”

US President Donald Trump said the naval vessels allegedly targeted by Iran while moving through the Strait of Hormuz toward the Gulf of Oman were not damaged.

“There was no damage done to the three destroyers, but great damage done to the Iranian attackers,” Trump said.

The renewed tensions emerged at a time when both sides were expected to move closer toward a potential agreement, reviving concerns over supply security and lending support to oil prices. ETI to Raise Funds from International Debt Capital Markets