Oil Hits Three-Week High as Escalating US-Iran Conflict Threatens Strait of Hormuz

Oil rose to a three-week high early Monday after the conflict between the U.S. and Iran escalated over the weekend, fueling concerns about potential disruptions to global crude supplies. West Texas Intermediate crude oil was last seen up $2.40, or 3.4%, at $73.81, the highest since June 22, while September Brent crude rose $2.58, or 3.4%, to $78.59. The U.S. struck sites in Iran, while Tehran targeted shipping in the Strait of Hormuz and U.S. assets in neighboring countries. Iran also renewed its threat to close the Strait, the chokepoint through which about 20% of global oil consumption moves before reaching international markets. The Guardian reported only 14 ships moved through the waterway on Sunday, citing data from Kpler, the lowest level in a month and down 52% for the week ended Sunday. However, the U.S. said the Strait remains open. The apparent end to last month's peace deal between the two counties is pushing oil higher, renewing worries over higher inflation and rising interest rates and preventing countries that rely on Gulf exports from restocking inventories depleted since the Feb. 28 start to the war. "Oil prices jumped, with Brent trading near USD 80 per.