Brent crude futures rose 4% on Tuesday after the U.S. military conducted strikes in Iran, increasing uncertainty over whether a deal will be reached soon to end the war and open shipping routes through the Strait of Hormuz.
Global benchmark Brent rose $3.78, or 3.9%, to $99.92 a barrel, while U.S. West Texas Intermediate crude fell $2.88, or 3.0%, to $93.72.
Iran’s foreign ministry said U.S. strikes in the southern Hormozgan province, where Iranian media reported sounds of explosions early Tuesday, represented a “gross violation” of a fragile ceasefire that has been in place for nearly seven weeks.
The U.S. strikes happened as Iran’s leading negotiator and foreign minister were in Doha for discussions with Qatar’s prime minister about a possible agreement.
Since late February, Iran has essentially stopped most non-Iranian shipping through the Strait of Hormuz, cutting off roughly 20% of worldwide oil and LNG transportation.
By CEO NA Editorial Staff
