Oil tops $106 as Trump seeks to reopen Hormuz Strait

Global oil prices continued their climb on Monday as uncertainty grows over the effective closure of the Strait of Hormuz, a critical waterway that normally carries about one-fifth of the world’s oil supply.

Brent crude surged as much as 3% on Sunday to exceed $106 a barrel before easing slightly to $104.63 early Monday. Markets remain jittery amid stalled maritime traffic caused by Iranian retaliation for U.S. and Israeli strikes, News.Az reports, citing Al Jazeera.

U.S. President Donald Trump called on allies, including China, Japan, France, and the UK, to help Washington secure the strait. So far, responses have been muted, with Japan and Australia stating they will not send naval forces.

“This is the largest disruption to global energy supplies in history,” warned the International Energy Agency. The United Kingdom Maritime Trade Operations reported that only five commercial vessels are passing daily, down from a historical average of 138, and at least 16 ships have been attacked since February 28.

Trump emphasized his readiness to deploy the U.S. Navy to escort commercial shipping through the strait if necessary but stated operations would only begin after further degradation of Iran’s military capacity.

The escalation has pushed Brent crude prices up more than 40% since the start of the Middle East war, raising fuel costs globally and fueling concerns of an economic slowdown.

News.Az 

By Aysel Mammadzada