Oil climbs above $85 as US-Iran strikes raise Hormuz escalation risk
Crude rose above $85 a barrel Monday as US and Iran exchanged strikes for the first time in roughly a month, amid growing concerns over Strait of Hormuz mine deployments and shipping disruption.
Crude oil climbed above $85 a barrel on Monday as tensions escalated in the Middle East, with the US and Iran exchanging strikes for the first time in roughly a month and concerns growing over the security of the Strait of Hormuz.
US forces targeted Iranian military assets after detecting preparations to deploy mines in the waterway, while Iran responded with missile and drone attacks on US facilities in Jordan.
Iranian media also reported that a tanker had struck two mines and that authorities seized a bulk carrier near Bandar Abbas, although US Central Command said no vessels had hit mines in Hormuz.
The developments have heightened fears that further military escalation could disrupt shipping and tighten global energy supplies.
Oil prices are now around 1% higher in August, following a 21.8% surge in July.
Despite the risks, an estimated 6—8 million barrels of crude continue to transit Hormuz daily, mainly from other Gulf producers.