Oil Prices Jump Over 3% as US-Iran Strikes Renew Hormuz Concerns

Oil prices climbed more than 3% on Monday following renewed military strikes between the United States and Iran, reigniting concerns about energy shipments through the Strait of Hormuz, a vital route for global oil and gas trade.

Brent crude futures rose $2.47, or 3.25%, to $78.48, while US West Texas Intermediate crude climbed $2.35, or 3.29%, to $73.76, according to Dawn. The Jerusalem Post reported similar gains, with Brent up 3.14% to $78.40 and WTI up 3.04% to $73.58 at 1321 GMT.

Coverage Comparison

The price surge came after weekend strikes between the US and Iran, with Tehran targeting US facilities across the Gulf and announcing it had again closed the Strait of Hormuz, as reported by Dawn. Iran's Revolutionary Guards also said they attacked US military bases in Kuwait and Bahrain.

US President Donald Trump said on Sunday that the Strait of Hormuz was open to commercial traffic, according to Dawn. US Central Command (CENTCOM) echoed that sentiment, stating, "The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it," following its own strikes on dozens of Iranian targets, as reported by the Jerusalem Post.

Iran, however, maintains that it exercises full control over the strait, a claim reported by the Jerusalem Post.

While the immediate focus remains on the conflict's impact on oil flows, data from multiple analytics firms cited in The Hindu's World section shows a partial recovery in Gulf oil exports. In June, exports jumped more than 3 million barrels per day from May to exceed 10 million barrels per day, helped by US military efforts to keep oil flowing through the strait.

Key Claims

  • Oil prices rose more than 3% due to renewed US-Iran military strikes, as reported by Dawn and the Jerusalem Post.
  • Iran declared it had closed the Strait of Hormuz after a vessel traveling on an unapproved route was struck, according to Dawn.
  • US President Donald Trump said the strait was open to commercial traffic, as reported by Dawn.
  • US Central Command said Iran does not control the strait, while Iran claims full control, per the Jerusalem Post.
  • Gulf oil exports in June exceeded 10 million barrels per day, up more than 3 million bpd from May, but remained 40% below pre-war levels, according to The Hindu's World section, citing Kpler and Vortexa data.
  • The UAE led the recovery, allowing millions of barrels of stranded crude to reach international markets, with UAE exports reaching a record 3.7-3.8 million bpd in June, as reported by The Hindu.
  • Combined crude and condensate exports from Saudi Arabia, the UAE, Kuwait, Iraq, and Iran rose by more than 3.5 million bpd from May to 10.07 million bpd, per Kpler data cited by The Hindu.
  • US Energy Secretary Chris Wright said oil flows through the strait are about 10 million barrels a day, with about 15 million bpd including pipeline volumes, as reported by TASS.
  • Goldman Sachs estimated that expanding pipeline capacity in the Middle East could shield more than 60% of pre-war Gulf oil exports from future Hormuz disruptions by end-2028, according to Dawn.

Perspectives

United States (CENTCOM and Trump administration): The Strait of Hormuz remains open to commercial traffic, and Iran does not control it. The US military conducted strikes to limit Iran's ability to attack in the waterway, and US forces are helping maintain oil flows.

Iran: The country exercises full control over the Strait of Hormuz and has closed it after a vessel traveled on an unapproved route and was struck. Iran's Revolutionary Guards have attacked US facilities in the region.