Oil prices rise as U.S. and Iran fight for control of Strait of Hormuz

• WTI crude futures climbed 3.4% to $73.87 per barrel while Brent futures rose 3.5% to $78.67 as tensions intensified over the weekend
• Iran's Revolutionary Guard claimed to have closed the Strait of Hormuz, but U.S. military disputed this, stating the strait remains open with ships continuing to transit
• The conflict stems from disagreements over a June 17 interim peace deal regarding how commercial shipping should resume through Hormuz after traffic plunged following earlier attacks in March

Oil Prices Surge Amid U.S.-Iran Conflict Over Strait of Hormuz

Oil prices jumped Sunday evening as military tensions escalated between the U.S. and Iran over control of the Strait of Hormuz, a critical global energy chokepoint. WTI crude futures rose 3.4% to $73.87 per barrel, while Brent crude climbed 3.5% to $78.67 by 6:03 p.m. ET.

Key Developments:

The U.S. military conducted a second wave of strikes against Iran on Sunday, following Saturday's attacks on 140 targets. The strikes were retaliation for an Iranian Revolutionary Guard Corps (IRGC) attack on a container ship transiting the strait. Iran responded with strikes on U.S. military facilities in Jordan, Kuwait, Bahrain, and Oman.

Iranian state media claimed the IRGC closed the Strait of Hormuz until further notice, though U.S. Central Command disputed this, stating the waterway remains open to lawful transit. Maritime intelligence firm reports confirmed nine ships passed through on Saturday. The southern route through Oman's waters remains operational, though security concerns persist.

Market Context:

Approximately 20% of global oil supplies transited Hormuz before U.S.-Israeli attacks on Iran on February 28. Traffic collapsed in early March when Iran began targeting ships, but had partially recovered following a June 17 interim peace deal between Washington and Tehran.

This marks the fourth round of U.S. strikes against Iran within the past week, all related to attacks on commercial vessels. The conflict stems from competing interpretations of the interim agreement, with Iran demanding ships use a northern route through its territorial waters.

The situation remains highly volatile, with mariners advised to exercise "extreme vigilance."