US and Iran Exchange Fire in Hormuz Strait, Driving Oil Prices Upward

Global oil benchmark Brent crude saw a 2.3% rise to $102.40 a barrel, while US-traded crude climbed 2.1% to $96.80 after US and Iranian forces engaged in a confrontation within the Strait of Hormuz.

The US military stated it intercepted what it termed "unprovoked" Iranian attacks, encompassing missiles, drones, and small boats. These actions occurred as US ships departed the Gulf via the strait, prompting what the US described as self-defence strikes.

This latest incident strains the indefinite ceasefire brokered by President Donald Trump on 21 April, intended to facilitate further peace negotiations. The conflict, initiated on 28 February by US and Israeli strikes against Iran, has seen energy prices surge, partly due to Iranian threats to shipping in the Strait of Hormuz in response to these attacks. More than 20% of the world's oil and gas shipments typically pass through this critical chokepoint.