FX.co ★ Oil Jumps as US-Iran Conflict Intensifies

Crude oil prices climbed toward $85 per barrel on Monday, extending last week’s gains as rising tensions between the US and Iran stoked concerns over further disruptions to Middle Eastern supply. Iran announced that its ceasefire with the US had effectively collapsed and said over the weekend that it had intercepted four vessels transiting the Strait of Hormuz. The US military, meanwhile, reported the death of a third service member in two days amid continued exchanges of attacks with Tehran. The conflict has also widened beyond strictly military targets, with bridges, utilities, and port infrastructure coming under fire. Kuwait Petroleum Corp. reported that an Iranian strike hit one of its oil facilities on Saturday. Oil prices have now surged nearly 30% from their July lows as the interim peace agreement between Washington and Tehran unraveled, the US reinstated its blockade of Iranian ports, and Iran stepped up attacks on ships near the Strait of Hormuz.