Oil prices jump as US, Iran trade fire in Strait of Hormuz

Brent crude rises amid clashes in critical waterway.Oil prices have jumped after clashes between United States and Iran in the Strait of Hormuz pushed their tenuous ceasefire to the brink.Futures for Brent crude rose as much as 7.5 percent during a volatile trading session on Thursday, before easing as Asia’s markets opened on Friday morning.Recommended Stories list of 4 itemslist 1 of 4Videos show interceptions over the skies of Tehranlist 2 of 4Barcelona vs Real Madrid: All to know about El Clasicolist 3 of 4Huge fire at Mexican fair kills five peoplelist 4 of 4Are global alliances fracturing?end of listThe international benchmark stood at $101.12 per barrel as of 03:00 GMT, down from the day’s high of $103.70.The latest rise came after the US and Iran exchanged fire in the critical strait, a conduit for about one-fifth of global oil and natural gas supplies, despite the truce announced between the sides on April 7.US Central Command (CENTCOM) said it launched strikes on Iran after three US Navy guided-missile destroyers came under attack from Iranian missiles, drones and small boats in the strait.Iran’s Khatam al-Anbiya Central Headquarters earlier accused the US of violating the ceasefire by attacking an Iranian oil tanker and another vessel in the vicinity of the waterway.The Iranian military headquarters also accused the US of targeting civilian areas, including Qeshm Island.US President Donald Trump on Thursday appeared to downplay the clashes, saying the ceasefire remained in effect, while Iran’s state-run Press TV said the situation had gone “back to normal”.Shipping in the strait has been at a near standstill since late February amid the threat of Iranian attacks on the massive oil tankers that usually transport much of the world’s energy supplies.Brent prices are up about 40 percent compared with before the war amid an estimated shortfall in daily production of 14.5 million barrels.