Tensions in the Strait of Hormuz Cause Oil Prices to Rise by Nearly 3%

The tensions between the US and Iran are affecting the Strait of Hormuz, causing oil prices to rise. Brent oil rose by 2.8% to $78.14. In response to these developments, the US Central Command announced that the US military had struck 140 targets and continued its attacks on Iran. Iran retaliated with attacks on US military facilities in Jordan, Kuwait, Bahrain, and Oman. The Iranian Revolutionary Guard announced that the Strait of Hormuz had been closed, but this claim was denied by the US military.The tensions between the US and Iran are escalating due to conflicting interpretations of how the Strait of Hormuz should be reopened. US President Donald Trump stated that the Strait of Hormuz was open. The US Central Command stated on social media that it was deployed and ready to ensure freedom of navigation.This increase in oil prices raises concerns about the economic implications of the tensions in the Strait of Hormuz. Brent oil futures partially gave back their initial gains, rising by 2.8% to $78.14 per barrel.