Oil prices rose sharply on Monday as the Middle East plunged into chaos once again. Crude oil prices jumped 4% as new military action between Iran and the United States stoked concerns about the security of the Strait of Hormuz, a major global energy route.As of 7:30 a.m., Brent crude oil was up 4.28% at $79.26 per barrel, while WTI was up 4.37% at $74.53 per barrel.This increase came after Tehran expanded its strikes to include Qatar and the United Arab Emirates over the weekend, while the United States carried out another round of attacks on Iran. These exchanges represent the latest escalation in the conflict centering on shipping through the Strait of Hormuz.Although US President Donald Trump said on Sunday that commercial traffic was continuing through the strait, Iran had previously announced that it had closed the waterway after a ship traveling on an unapproved route was hit.
Ship tracking data from Kepler showed that only six ships passed through the strait on Sunday, the lowest number in five weeks.The renewed hostilities have also cast a cloud over the future of the interim agreement between the United States and Iran signed last month, which was intended to reopen the strait and end the conflict after another 60 days of negotiations.On the energy front, the International Energy Agency said in its monthly report that global oil supplies increased by 4.1 million barrels per day in June after the agreement, although production remained 9.4 million barrels per day below pre-war levels.
As the fighting intensified, Iran’s Foreign Ministry issued a strong condemnation of the recent US military strikes, calling them a “flagrant violation” of the UN Charter and accusing Washington of violating the ceasefire agreement while undermining regional stability.The ministry warned that any country that allows its lands or facilities to be used in military operations against Iran could itself become a target of Iranian defensive action.The ministry said: “The lands or facilities of any country used to launch military attacks against Iran may be considered a source of aggression and treated as a legitimate target for defensive operations carried out by the Iranian armed forces.”Iran also denied the statements attributed to the US President about the recent talks that took place in Muscat, describing them as “complete lies.” According to Tehran, discussions were limited to arrangements related to the management of the Strait of Hormuz and the security of international shipping routes.The ministry criticized what it described as the inadequate response of the United Nations Secretariat to the US military action, and urged UN Secretary-General Antonio Guterres and the UN Security Council to hold those responsible accountable, stressing that the strikes violate international law and the UN Charter.The diplomatic statement came in the wake of new US military action on Sunday. According to US Central Command (CENTCOM), the operation was intended to further weaken Iran’s ability to target civilian sailors and commercial ships transiting the Strait of Hormuz.Iranian Press TV reported that explosions were heard in the cities of Jask, Bandar Abbas and Sirik in the south of the country after the operation.US forces had previously struck about 140 Iranian military targets on Saturday, using precision munitions launched from land and sea combat aircraft, drones, and naval ships. Targets included missile and drone sites, naval capabilities, ammunition storage facilities, communications networks, and coastal observation sites.Earlier, United Nations Secretary-General Antonio Guterres expressed his deep concern about the renewed military confrontation between Iran and the United States, warning that the escalation could have serious regional and global consequences.