Oil prices climb after US and Iran exchange fire in Strait of Hormuz
Oil prices climbed after US and Iranian forces exchanged fire in the Strait of Hormuz. President Donald Trump said the ceasefire between Washington and Tehran was still in place despite the incident.
According to the BBC, US and Iranian forces exchanged fire in the Strait of Hormuz, prompting global crude prices to climb. Brent and WTI contracts gained more than 2% intraday in response to the incident.
US President Donald Trump said the ceasefire announced last month between Washington and Tehran remained in force. The White House described the incident as an isolated encounter and said it had no intention of opening a new front. Iran said its forces had acted purely with deterrent intent.
Investors are closely watching tanker traffic through Hormuz and the rise in shipping insurance premiums. The strait carries about a fifth of the world's oil supply. Energy-importing economies including Australia and New Zealand are once again facing renewed cost pressure; regional energy companies have started to review their reserve and insurance structures.
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