Brent Oil Surges 5% Amid Strait of Hormuz Explosions

The price of Brent oil surged by around 5% after explosions were heard on Iran's Qeshm Island, which is near the entrance to the Strait of Hormuz.

The operation targeted what were described as 'hostile objects' in the area. According to Iran's semi-official Tasnim News Agency, two explosions were linked to an operation against these targets.

The price of Brent oil reached $82.3 as of 2240GMT, up 4.9%, while the price of West Texas Intermediate (WTI) crude rose 4% to $78. The price of EU gas also soared by 11.5% to €58.4 per megawatt.

This comes after Iran said an agreement with Oman to reopen the critical waterway was close, raising hopes of easing tensions in the Middle East and reducing inflationary pressure from elevated energy prices.