Foreign: Oil prices rose in early trading on Sunday as a standoff between Iran and the United States prevented tankers from using the Strait of Hormuz, a Persian Gulf waterway vital to global energy supplies.
According to the AP, the price of U.S. crude rose 6.4% to $87.90 a barrel. Brent crude, the international standard, rose 5.8% to $95.64 a barrel.
The market reaction came after more than two days of heightened hopes and expectations surrounding the strait turned bearish. Crude oil prices fell more than 9% on Friday after Iran said it would fully reopen the strait, which it effectively controls, to commercial traffic.
Tehran has rejected that decision, with Iran firing on several vessels on Saturday after US President Donald Trump said a US naval blockade of the strait on Iranian ports would remain in effect. On Sunday, Trump said the US had attacked and seized an Iranian-flagged cargo ship, accusing it of trying to evade the blockade. However, Iran’s military command has vowed to retaliate.
Translated by Nay Tola
