Oil jumps 4% as US-Iran strikes rattle Hormuz shipping
Why it matters: Brent rose above $79, vessel traffic through the strait fell to a five-week low and traders revived Fed hike bets.
Oil prices climbed more than 4% Monday after the United States and Iran traded fresh strikes and uncertainty deepened over shipping through the Strait of Hormuz. Brent crude rose to $79.11 a barrel and West Texas Intermediate reached $74.36. Ship-tracking data from Kpler showed only six vessels transited the strait on Sunday, the fewest in five weeks, even as US officials said commercial traffic remained open and escorts continued. The flare-up also hit broader markets: Asian shares fell, Treasury yields rose and the dollar strengthened as investors weighed renewed inflation pressure and higher odds of additional Federal Reserve tightening. Gold and silver dropped as rising yields weighed on non-interest-bearing metals.