Oil Prices Soar Amid US-Iran Tensions at Hormuz Strait
Oil prices have surged to their highest level in months amid escalating tensions between the US and Iran at the Strait of Hormuz. The price hike comes as the US and Iran resumed military strikes, with the US hitting Iranian targets near the strategic waterway. The situation has sparked concerns about supply disruptions, with Brent futures rising $3.44 or 3.8% to $93.93 a barrel.
The Trump administration recently unveiled a historic US-Venezuela oil deal, which secures majority control over 65 billion barrels of proven Venezuelan oil reserves - around 20% of the South American country's total reserves. However, experts say this will not provide short-term relief to Americans, with gas prices remaining above $4 per gallon.
The situation at the Strait of Hormuz has been volatile, with a tanker hit by three unknown projectiles while crossing the waterway on Monday. The UK Maritime Trade Operations agency reported no casualties, but the incident highlights the risks of supply disruptions in the region.