Oil prices spike above $110 as Iran closes Strait of Hormuz

Oil prices have spiked once more after Iran declared the Strait of Hormuz "closed" and warned that any transit through the waterway would face "severe measures."

The price of Brent crude oil rose to $110 a barrel after the warning, the second highest level since the US begun its offensive against Iran last month, News.Az reports, citing foreign media.

The Strait of Hormuz provides the only passage from the Persian Gulf to the open ocean, making it a crucial point for the oil industry. Around 20 per cent of the world’s gas and oil is shipped through the waterway, with continued Iranian threats proving highly damaging for global trade.

Several tankers have already been attacked by Iranian forces around the strait, with shipping traffic brought to a virtual standstill by the threat of strikes.

Donald Trump said on Thursday he would again extend the deadline for Iran to reopen the waterway or face the destruction of its energy plants, after Tehran had earlier rejected a 15-point US proposal to end the fighting.

News.Az 

By Ulviyya Salmanli