Osmond ChiaBusiness reporter
Anadolu via Getty Images
Oil prices rose on Friday morning trade in Asia after the US and Iran exchanged fire in the key Strait of Hormuz waterway.
The US military said it intercepted what it called “unprovoked” Iranian attacks – including missiles, drones and small boats – and carried out self‑defence strikes as its ships were heading out of the Gulf through the strait.
The price of global oil benchmark Brent rose by 2.6% to $102.70 (£75.77) a barrel, while US-traded crude was 2.3% higher at $97.
The flare-up raises concerns over the US-Iran ceasefire, which President Donald Trump extended indefinitely on 21 April to allow more time for peace talks.
Trump said the ships that came under fire were three “world class American destroyers” that had transited out of the Strait of Hormuz without being damaged.
He said several Iranian small boats had been “completely destroyed” and missiles that had targeted the US ships were “easily knocked down”.
Iran’s military accused the US of violating the ceasefire by targeting its ships, including an oil tanker, that were moving towards the Strait of Hormuz, according to the Islamic Republic of Iran Broadcasting.
It said “aerial attacks” were also carried out along the coastline near the strait, prompting Iranian forces to respond by attacking the US military vessels, inflicting “significant damage.”
The US military has denied that its ships had been hit.
US Central Command also said it was not seeking to escalate the conflict.
Iranian state media later reported that the situation “is back to normal now”.
Trump told ABC News that the Iran strikes were “just a love tap”, adding that the ceasefire was still in effect.
He reiterated his threat that Iran would face attacks again if it did not make a deal to restart talks to end the war.
This week, Trump said that the war, which started on 28 February when the US and Israel attacked Iran, will be “over quickly” as Washington pushes for a framework for more detailed negotiations with Tehran.
Energy prices have surged since the start of the conflict after Iran threatened to attack ships in the critical Strait of Hormuz trade route in retaliation to the US-Israeli strikes.
More than a fifth of the world’s oil and gas shipments usually pass through the waterway.
