US-Iran Tensions Fuel Oil Price Surge as Strait of Hormuz Remains Blocked

Oil prices have extended their gains due to renewed US-Iran tensions. On Sunday, Washington struck Iranian rocket launchers on the island of Larak, prompting Tehran to target US forces in Jordan and the United Arab Emirates. This escalation comes six months into a conflict that has seen Iran block the Strait of Hormuz and the US maintain a blockade of Iranian ports.

Iran's President Masoud Pezeshkian stated that his country will reciprocate if the US returns to its commitments under an interim deal signed in June. The agreement was reached in June, but details have not been publicly disclosed.

The Strait of Hormuz shipping remained subdued on Monday, with around five vessels making the passage compared with a 10-day average of about 14. No liquid tankers transited the key waterway, although the figures exclude vessels sailing with their transponders switched off.