Oil prices rise as U.S. and Iran fight for control of Strait of Hormuz

Key Points:

• Oil prices surged Sunday evening, with U.S. crude futures rising 3.4% to $73.87 per barrel and Brent futures up 3.5% to $78.67, following renewed strikes between the U.S. and Iran over control of the Strait of Hormuz.
• The U.S. military launched additional strikes against Iran in response to an attack by the Islamic Revolutionary Guard Corps on a container ship, while Iran retaliated by targeting U.S. military facilities in several Middle Eastern countries.
• Despite Iranian claims that the Strait of Hormuz was closed, U.S. Central Command and President Trump confirmed the strait remains open to lawful maritime traffic, with ongoing vessel transits observed.
• The security situation in the strait remains tense, with maritime authorities urging extreme vigilance due to the ongoing conflict and conflicting claims over control and navigation routes.
• The current hostilities stem from differing interpretations of an interim peace deal signed on June 17, amid broader tensions following attacks on commercial shipping and prior U.S. and Israeli strikes on Iran.