Oil Prices Jump 2%+ After US-Iran Clash in Strait of Hormuz

Oil prices rose in Friday morning trade in Asia after the US and Iran exchanged fire in the Strait of Hormuz waterway.

The US military said it intercepted what it called unprovoked Iranian attacks, including missiles, drones and small boats. It carried out self-defense strikes as its ships headed out of the Gulf through the strait.

The price of global oil benchmark Brent rose 2.3% to $102.40 (£75.53) a barrel. US-traded crude gained 2.1% to $96.80.

The flare-up endangers the US-Iran ceasefire, which President Donald Trump extended indefinitely on April 21 to allow more time for peace talks.

This week, Trump said the war, which started on February 28 when the US and Israel attacked Iran, will be over quickly. Washington is pushing for a framework for more detailed negotiations with Tehran.

Energy prices have surged since the conflict began. Iran threatened to attack ships in the critical Strait of Hormuz trade route in retaliation for the US-Israeli strikes.