Brent crude hits near $115 after Iran-US naval incident

Brent crude futures surged more than 5.5% on Monday, climbing toward $115 per barrel, News.Az reports, citing Anadolu.

The oil prices jumped after missiles reportedly struck a US Navy vessel near Jask Island, sharply increasing security concerns around the Strait of Hormuz.

After briefly approaching $115 a barrel, prices were trading at around $114 as of 10:25 GMT.

The rally came after Iran’s semi-official Fars news agency reported that two missiles hit a US Navy vessel near Jask after it allegedly ignored warnings from the Islamic Revolutionary Guard Corps (IRGC) to stop.

Iran’s navy also stated that it had blocked US warships from entering the Strait of Hormuz area, further intensifying fears of a wider military escalation near the strategic energy chokepoint.

The developments have deepened concerns over possible disruptions to commercial shipping and energy transport through the strait, which is a vital route for crude oil, refined petroleum products, and liquefied natural gas exports from Gulf producers.

Market volatility has increased in recent sessions as traders price in higher war-risk premiums, potential shipping delays, and tightening seaborne energy supplies.

The escalation follows earlier Iranian warnings that any US forces approaching or entering the Strait of Hormuz without coordination would be targeted. US President Donald Trump had previously announced a naval initiative, known as Project Freedom, designed to escort civilian vessels through the waterway.

Despite rising tensions, Tehran has said it is reviewing Washington’s latest 14-point proposal, leaving open the possibility of a diplomatic path. However, oil markets remain focused on immediate security risks following the reported strike near Jask.

News.Az 

By Nijat Babayev