Oil prices surged sharply as renewed violence in the Strait of Hormuz raised concerns about the stability of the fragile ceasefire between the United States and Iran.

Brent crude, the main global benchmark for oil, climbed nearly 6 percent on Monday, reaching $114.44 per barrel, News.Az reports, citing Al Jazeera.

Prices eased slightly early Tuesday, with Brent futures trading at $113.54 as of 02:00 GMT.

The spike followed reports from the US military that it had destroyed six Iranian small boats in response to attacks on commercial vessels in the strategic waterway. At the same time, the United Arab Emirates said it had come under attack from Iranian missiles and drones.

However, an Iranian military source, cited by the state-run IRNA news agency, denied the US claims that several Iranian boats had been sunk, calling the statement “false”.

According to June Goh, a senior oil market analyst at Sparta in Singapore, rising prices reflect market concerns over “further damage to oil infrastructure and the possibility that the Strait of Hormuz could remain closed longer than anticipated by the Trump administration.”

Although US President Donald Trump announced on Monday that American forces would “guide” commercial ships through the key shipping lane, many shipping companies have remained reluctant to pass through due to ongoing safety risks.

The US military reported that two US-flagged merchant vessels crossed the strait following the launch of “Project Freedom,” but there has been no clear indication of a broader return of shipping activity in the area.

Meanwhile, the head of the International Transport Workers’ Federation (ITF) warned on Monday that vessels should not be expected to navigate the strait “without a full guarantee of safety.”

News.Az 

By Nijat Babayev