Oil jumps over 3 per cent as fresh US-Iran strikes raise Hormuz supply fears

Global oil prices surged by more than 3 per cent on Monday after the United States and Iran exchanged fresh military strikes, reigniting concerns over the security of the Strait of Hormuz, one of the world's most critical oil shipping routes.

US West Texas Intermediate (WTI) crude rose 3.4 per cent to $73.87 a barrel by early evening in New York, while Brent crude, the global benchmark, climbed 3.5 per cent to $78.67 a barrel. Brent briefly traded close to $79 a barrel, around 9 per cent above its level before the conflict escalated.

The gains came after the US launched another round of strikes against Iranian positions, saying the operation was aimed at reducing Tehran's ability to threaten civilian shipping and commercial vessels transiting the Strait of Hormuz.

In a statement, the US Central Command (CENTCOM) said its forces had carried out further attacks to degrade Iran's military capabilities in the strategic waterway.

"The Commander in Chief has directed the strikes to hold Iranian forces accountable," CENTCOM said.

According to US media reports, the latest assault marked the third wave of American strikes within 24 hours. Earlier operations reportedly targeted Iranian missile batteries, air defence systems, radar installations, fast attack boats and weapons storage facilities located around the strait.

During the latest operation, Iranian forces reportedly opened fire near commercial shipping. CENTCOM said US aircraft intercepted and destroyed an Iranian cruise missile and a one-way attack drone.

Iran claimed the Strait of Hormuz had been closed until further notice, but the US military rejected the assertion, maintaining that maritime traffic continued through the vital corridor.

"Iran does not control the strait. Traffic is flowing," CENTCOM said.

Shipping, however, remains well below normal levels. Maritime intelligence firm Windward tracked only nine vessels passing through the strait on Saturday, while the Joint Maritime Information Center said the southern route through Omani waters remained open but advised ships to exercise "extreme vigilance".

Before the conflict intensified, more than 130 vessels crossed the Strait of Hormuz each day. That number dropped sharply to just 22 on Thursday, according to maritime analytics firm Kpler.

"That confidence eroded very, very quickly. We're back to square one when it comes to that situation," Amena Bakr, Kpler's head of Middle East research, was quoted as saying.

Meanwhile, US media reported that around 140 Iranian targets were struck during the latest American offensive. Iran responded with attacks across the Gulf region. Kuwait said three border posts and an offshore oil platform were damaged in the strikes, with one worker reported injured.

The Strait of Hormuz carries roughly a fifth of the world's oil supplies, making any disruption to shipping through the narrow waterway a major concern for global energy markets.

With IANS inputs