Oil rises after Iran and US trade airstrikes

Oil prices rose after renewed U.S. and Iranian military strikes heightened fears that shipping could be disrupted through the Strait of Hormuz, one of the world’s most important oil transit routes.

Reuters reported that oil jumped more than 2% after Iran’s Revolutionary Guards said they targeted a U.S. airbase in response to U.S. strikes near Bandar Abbas. AP also reported gains of more than $2 a barrel as markets reacted to the latest escalation.

The move came after CENTCOM said Iran launched a ballistic missile toward Kuwait and fired five one-way attack drones near the Strait of Hormuz, with U.S. forces intercepting the drones and stopping a sixth launch from Bandar Abbas.

AP later reported that U.S. forces carried out new defensive strikes on Iran, adding to concern that the confrontation could continue despite a fragile ceasefire environment and ongoing negotiations.

The latest developments have focused market attention on the Strait of Hormuz, where any disruption to shipping could quickly affect global oil flows and prices.

Investors were left watching whether Iran would mount further retaliation, whether shipping through the strait would be affected, and whether the price move would hold as traders digested the widening conflict.