Oil prices rise as the US and Iran attack on the Strait of Hormuz | US-Israel War on Iran News

Brent crude rose more than 4 percent as Washington and Tehran clashed over control of the sensitive water channel.

Oil prices have risen amid the latest outbreak of conflict between the United States and Iran over the Strait of Hormuz.

Brent crude, the world’s main benchmark, rose more than 4 percent on Monday as Washington and Tehran traded blows amid their tensions over control of the sensitive water channel.

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Brent futures for September delivery were at $79.29 a barrel as of 02:00 GMT, the highest since June 22.

The US Central Command (CENTCOM) said on Sunday it had carried out a series of strikes against Iran to destroy its ability to attack ships in the Gulf, just hours after hundreds of missiles were struck in the country.

The US military launched the initial threats after accusing Iran’s military of a “terrorist” attack on a Cypriot-flagged vessel, the MV GFS Galaxy, as it passed through the channel.

“The Strait of Hormuz is an important sea route for world trade. Iran does not control it,” CENTCOM said on Sunday.

“The U.S. military is positioned and ready to ensure that freedom of navigation remains available for commercial purposes despite Iran’s continued acts of aggression, harassment, intimidation, and unjustified propaganda.”

Iran’s military on Sunday launched military and drone strikes against the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain in response to US strikes.

Iran’s Persian Gulf Strait Authority, which says it has the right to control traffic through the Strait of Hormuz, has previously said that ships trying to cross the strait without using the preferred route “will not be protected by security”.

“The consequences of crossing illegal roads are the responsibility of the owner, driver, and operator of the train,” said the official.

Following the signing by Washington and Tehran of a memorandum of understanding on the end of the war last month, the maritime traffic in the Strait of Hormuz has decreased significantly amid the latest fighting between the sides.

Only six ships were tracked across the channel between 18:00 GMT on Thursday and 06:00 GMT on Friday, compared to the daily 18-22 crossings earlier this month, according to maritime intelligence platform Windward.

Nine ships were tracked in the waterway between 18:00 GMT on Saturday and 06:00 GMT on Sunday, four of which were flying the Iranian flag, according to Windward.

About 130 ships passed through the river, one-fifth of the world’s oil trade in peacetime, every day before the war.

Oil prices, which returned to pre-conflict levels after the signing of the memorandum on June 17, are now about 9 percent higher than before the US-Israel deal with Iran at the end of February.

Mukesh Sahdev, founder and chief oil analyst at XAnalysts in Sydney, Australia, said he expects the price of Brent per barrel to remain above the $70s in August and September amid global uncertainty.

“There could be spikes and dips outside of this range,” Sahdev said in a note to clients on Saturday.

“Long-term procurement forces refiners to make decisions ahead of time,” added Sahdev.

“Those decisions have already reduced dependence on the Middle East, and the latest escalation should reinforce rather than reverse that trend.”