Oil prices rise after US and Iran exchange attacks around the Strait of Hormuz

Oil prices are rising on global markets today. This comes a day after the United States and Iran exchanged attacks in and around the Strait of Hormuz, casting doubt on the existing ceasefire.

North Sea Brent crude was up 1.43 percent at $101.49 a barrel at around 17:00 CEST. US light crude West Texas Intermediate (WTI) was up 0.49 percent at $95.38 a barrel at the same time.

"It seems the market is ready to seize every opportunity to price in a swift end to the war," said Nordea analyst Jan von Gerich.

"However, an agreement seems unlikely. I still believe that restrictions on traffic through the Strait of Hormuz will continue for an extended period and that the situation will not be resolved in the near future," he added.

Tensions escalated after US forces launched airstrikes on two empty Iranian oil tankers that were attempting to break the blockade, preventing them from entering an Iranian port.

According to the US forces' regional command, CENTCOM, Iranian armed forces then attacked three US destroyers sailing through the Strait of Hormuz. The United States responded with airstrikes on military facilities in Iran from which the attack had been launched.

Oil prices remain elevated as hopes fade that the two sides will agree to reopen the Strait of Hormuz, while attacks continue to threaten commercial vessels and shipping traffic remains almost paralyzed. Before the war, roughly one-fifth of global oil supplies passed through the strategically important strait.

Oil prices in dollars per barrel (about 159 liters)