Oil prices rose Monday as the U.S. launched Project Freedom in the Strait of Hormuz after renewed attacks on commercial vessels.
Oil prices rose Monday after the U.S. military launched an operation aimed at restoring freedom of navigation through the Strait of Hormuz, a critical shipping route that has seen renewed attacks on commercial vessels.
International benchmark Brent crude futures were up nearly 2% at $110.04 a barrel by 9:20 a.m. ET. U.S. West Texas Intermediate futures were little changed at $102.11 a barrel.
U.S. Central Command said the operation, called Project Freedom, began Monday with support from guided-missile destroyers, more than 100 aircraft and unmanned platforms. President Donald Trump said Sunday that the U.S. military would guide civilian ships through the strait.
Central Command said two U.S.-flagged merchant vessels successfully transited the waterway. It also denied Iranian media reports that the Revolutionary Guard had struck a U.S. warship with two missiles. “No U.S. Navy ships have been struck,” CENTCOM said in a social media post, adding that U.S. forces were supporting Project Freedom and enforcing a naval blockade on Iranian ports.
The operation follows at least two reported attacks on commercial ships in or near the strait over the weekend. The United Kingdom Maritime Trade Operations Centre reported that a tanker was hit by projectiles north of Fujairah in the United Arab Emirates and that a bulk carrier was attacked by several small craft off Iran’s coast.
The United Arab Emirates said Monday that Iranian drones targeted a vessel affiliated with state oil company ADNOC and condemned Iran’s attacks on commercial ships as “acts of piracy.”
Traders were also weighing OPEC+ plans to raise oil output by 188,000 barrels per day, the group’s first meeting since the United Arab Emirates’ exit as a key member.
The immediate focus for energy markets is whether the U.S. operation keeps commercial traffic moving through the strait and whether attacks on vessels continue. Gaurav Ganguly, head of international economics at Moody’s Analytics, warned on CNBC’s “Squawk Box Asia” that a sustained rise in crude could carry wider economic risks, saying Brent near $125 for an extended period could push the global economy toward recession.
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