Oil prices are up 4% and nearing $80 U.S. a barrel as the U.S. and Iran again trade missile strikes and the Strait of Hormuz waterway is closed to commercial shipping.
Brent crude, the international benchmark, is trading at $78.75 U.S. a barrel on July 13, while West Texas Intermediate (WTI) oil, the U.S. standard, is at $74.02 U.S. per barrel.
Prices are spiking as the U.S. military launches strikes against Iran, claiming to have hit 140 targets on July 11.
The strikes are in response to an attack by Iran on a container ship transiting the Strait of Hormuz, where 20% of the world’s crude oil is typically transported.
Iran has responded by firing missiles at U.S. military facilities in Jordan, Kuwait, Bahrain and Oman in recent days.
Iran has also said that the Strait of Hormuz is closed until further notice.
The U.S. disputes Iran’s statement but the security situation in the Strait of Hormuz remains fragile. Mariners should exercise “extreme vigilance,” said the U.S. government in a statement.
The current situation in Iran and the adjacent Strait of Hormuz has stocks around the world sharply lower on July 13, with the Nasdaq Composite (NASDAQ: $NDAQ) down 200 points.
