Global Oil prices climbed more than 4% on Monday as tensions increased between the United States and Iran.
Investors grew concerned about the safety of energy supplies moving through the Strait of Hormuz. The waterway is important for global Oil shipments and international trade.
Brent crude rose by $3.10, or 4.08%, during early trading. It reached $79.11 per barrel by 0325 GMT.
US West Texas Intermediate crude also recorded strong gains. WTI increased by $2.95, or 4.11%, to $74.36 per barrel.
The rise followed new military action by US forces against targets inside Iran. US Central Command confirmed the strikes in an official statement.
CENTCOM said the operation took place on July 12. It targeted dozens of military locations using precision weapons.
According to the statement, the strikes aimed to weaken Iran’s ability to attack international shipping. Commercial vessels continue to travel through the Strait of Hormuz.
US forces targeted Iranian air defence systems and coastal radar sites. Missile facilities and drone capabilities were also hit.
The operation also targeted small military boats. US fighter aircraft and naval vessels took part in the strikes.
CENTCOM said one-way attack aerial drones were used during the operation. One-way attack sea drones were also deployed for the first time.
The Strait of Hormuz remains one of the world’s most important maritime routes. A large amount of global energy trade passes through the area.
Iran is located along the strait but does not fully control the waterway. The route is also used by several Gulf countries.
US officials said their forces were prepared to protect freedom of navigation. They also promised to support the movement of commercial ships.
Washington accused Iran of aggression, harassment, threats and unsupported declarations in the region.
Iran’s Islamic Revolutionary Guard Corps also reported retaliatory military action. The IRGC claimed attacks against US military bases in several countries.
The group said bases in Kuwait, Jordan and Bahrain were targeted. Independent confirmation of those claims was not immediately available.
Bahrain later activated missile alert sirens for a second time. The warning followed reports of fresh Iranian retaliatory strikes.
The latest developments have increased fears of further military escalation. They have also raised concerns about possible disruptions to Oil supplies.
In other news read more about: Iran Threatens Qatar, Bahrain, Kuwait, Jordan, UAE and Oman as Regional Tensions Escalate
Energy markets remain sensitive to any threat involving the Strait of Hormuz. Traders are closely watching military activity and regional security developments.
