Oil prices surged more than 2% on Wednesday after the US and Iran exchanged fire in the Hormuz Strait, raising concerns about global energy supplies.
The flare-up further endangers the US-Iran ceasefire, which Donald Trump extended indefinitely on 21 April.
The Iranian military accused the US of violating the ceasefire by targeting its ships, including an oil tanker, that were moving towards the Strait of Hormuz, according to Islamic Republic of Iran Broadcasting.
The tanker, identified as the Iranian-flagged Sabiti, suffered damage but was able to continue on its journey, officials said.
Iran’s Response
Iran’s Revolutionary Guard accused the US of attacking the oil tanker in the early hours of the morning, saying the incident happened at 4:30 am local time.
No US or coalition forces were reported to have been injured, but tensions remained high in the region.
“The aggression of the American warship against the Iranian oil tanker in the Strait of Hormuz is a clear example of their violation of international law and their reckless and provocative behavior,” said General Hossein Salami, commander of the Islamic Revolutionary Guard Corps.
Market Reaction
Oil prices rose by 3.1% in London and 2.6% in New York, amid concerns about the stability of global oil supplies.
The increase in prices pushed crude oil above $63 a barrel, a level not seen since late 2018.
“The escalation in the Middle East has sent a clear signal to the market that things are getting worse in the region,” said Amrita Sen, an oil analyst at Energy Aspects.
Oil prices have been sensitive to tensions in the region in recent years, particularly following attacks on tankers in 2019.
The US has repeatedly accused Iran of being involved in those attacks, although Tehran has denied any involvement.
Global Concerns
The incident highlights the fragile state of the US-Iran ceasefire, which has been in place since January.
The deal was signed after a US drone strike in Iraq killed top Iranian military commander General Qasem Soleimani in January.
There are concerns that the latest escalation could lead to further tensions in the region, with potential implications for global energy markets.
The incident also highlights the strategic importance of the Hormuz Strait, which is the narrow waterway that connects the Persian Gulf to the Gulf of Oman and one of the world’s most critical oil shipping lanes.
