Oil rises above $106 per barrel as US, Iran deadlocked in Strait of Hormuz
Summary
Oil prices rose above $106 per barrel due to increased tensions between the United States and Iran in the Strait of Hormuz. Both countries have captured commercial ships, causing delays in a key route used to transport a large part of the world’s oil and gas.Key Facts
- Brent crude oil price went up nearly 5% to $106.80 per barrel.
- The Strait of Hormuz normally carries about 20% of the world’s oil and gas supply.
- Iran seized two commercial ships, claiming they operated without proper permits and interfered with navigation.
- The U.S. Navy has seized a tanker carrying Iranian oil, enforcing sanctions.
- President Donald Trump ordered the U.S. Navy to destroy any Iranian boats laying mines in the strait.
- Trump expanded the U.S. naval blockade to block any ship from entering or leaving without U.S. Navy approval.
- The number of commercial vessels passing through the strait has dropped sharply from an average of 129 daily before February 28 to fewer than 15 in recent days.
- Iran and the U.S. continue to have a standoff over control and security of the waterway.
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