Oil jumps 5% amid reports of alleged attack on US warship
Oil prices climbed sharply on Monday, rising about 5% amid escalating tensions in the Middle East and concerns over potential supply disruptions through the Strait of Hormuz, a key global oil transit route, Qazinform News Agency correspondent reports.
Brent crude rose roughly $5.5 to trade near $113-114 per barrel, while U.S. West Texas Intermediate gained about $5 to hover above $107. The surge followed reports from Iran’s Fars News Agency claiming an incident involving a U.S. warship near the strategic waterway.
The Strait of Hormuz handles a significant share of the world’s oil shipments, making it highly sensitive to geopolitical risks. Any threat to traffic in the area tends to push prices higher due to fears of supply constraints.
Financial markets reacted swiftly. U.S. stock futures reversed earlier gains and moved lower, with major indexes slipping by around 0.5% to 0.8%. European equities also turned negative, while the dollar strengthened as investors shifted toward safer assets.
Oil prices pared some gains later in the session, but remained elevated as uncertainty persisted over the situation and its potential impact on global energy flows.
Earlier, Qazinform News Agency reported that seven OPEC+ countries had decided to increase their oil production cap by 188,000 barrels per day in June.
