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Oil prices rise as US and Iran exchange strikes in Strait of Hormuz

Oil prices rise as US and Iran exchange strikes in Strait of Hormuz
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Oil prices rose Tuesday as renewed military exchanges between the United States and Iran fueled fears of broader escalation in the Middle East. Brent crude futures gained 56 cents, or 0.6%, to $91.05 a barrel, while U.S. West Texas Intermediate crude rose 83 cents, or 1%, to $86.59 a barrel .

U.S. President Donald Trump vowed to “hit them hard” after Iran launched missile strikes on American bases in Jordan and the United Arab Emirates, retaliating for U.S. attacks on Larak Island in the Strait of Hormuz. The U.S. military described its strike as “limited, precise action” against IRGC minelaying forces . Iran’s Islamic Revolutionary Guard Corps reported intercepting a U.S. MQ-9 drone over the eastern Strait of Hormuz following Trump’s remarks .

Trump also shared an AI-generated video on Truth Social depicting Kharg Island, Iran’s key oil export hub, being “blown to smithereens.” Hamid Bovard, chief executive of the National Iranian Oil Company, dismissed the post as “laughable” and stated that oil operations on the island continued without interruption. Kharg Island handles about 90% of Iran’s oil exports .

The UK Maritime Trade Operations reported that a tanker was struck by three unidentified projectiles while exiting the Strait of Hormuz off Oman, prompting warnings for vessels to transit with caution. Only five vessels crossed the strait on Monday, below average, according to Kpler data .

Iranian Foreign Minister Abbas Araqchi said the U.S. should return to its commitments under a Memorandum of Understanding. “The United States must return to its commitments and abide by the provisions of the memorandum of understanding. After that, we can move out of this situation,” Araqchi told Mehr News .

Trump claimed the Strait of Hormuz was in “extremely good shape,” with American naval assistance enabling 30 ships to transit nightly. He dismissed Iran as a “failed nation facing economic collapse and military destruction” .

Meanwhile, Trump hailed a new oil deal with Venezuela, granting the U.S. majority control over 65 billion barrels of Venezuelan crude, calling it “maybe the greatest deal ever made” . Analysts and legal experts have raised questions about the agreement’s viability and transparency .

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