FX.co ★ Oil Rises as US and Iran Exchange Fire

Crude oil climbed above $92 per barrel on Monday, extending last week’s gains as the US and Iran traded strikes in the Middle East, heightening fears of prolonged disruptions to regional energy supplies. Over the weekend, the US targeted three Iranian oil tankers in retaliation for ballistic missile attacks on US Navy warships. In response, Tehran announced plans to establish a new restricted zone outside the Strait of Hormuz, encompassing a US Navy blockade line and extending into parts of the Persian Gulf. At the same time, US Energy Secretary Chris Wright said Washington would maintain its naval presence in the Middle East, including the blockade aimed at curbing Iranian oil exports and ensuring the safe passage of commercial vessels through Hormuz. Hostilities between the two sides resumed last week after roughly a month of relative calm, driving oil prices about 10% higher as markets reassessed geopolitical and supply risks.