Oil prices soar after Iran hits US warship in Hormuz

Oil prices rose about 5% ‌on Monday after Iran’s navy halted a United States warship in the Strait of Hormuz, sparking concerns over a prolonged disruption in the vital oil transit route.

Brent crude futures were up $5.52, or 5.1%, at $113.69 a barrel by 1025 GMT, having settled ​down $2.23 on Friday, while U.S. West Texas Intermediate was up $5.10, or 5%, at $107.04 a barrel, after a $3.13 ​loss on Friday.

A U.S. warship intending to pass through the Strait was turned back ⁠after ignoring Iran’s warning, as two missiles hit it when it ​was sailing near Jask.

Iran’s navy also said it had prevented the entry of U.S. warships in the Strait of ​Hormuz area.

There was no immediate response from the United States, Reuters reported.

Prices were already trading up in the session on continued disruptions to oil ​supplies through the strait.

Iran warns over Hormuz: Latest developments in Middle East war

“The path for prices remains skewed to the upside as long as flows through the ​Strait remain restricted,” UBS analyst Giovanni Staunovo said.

President Donald Trump said the U.S. would begin efforts to assist ships stranded in ‌the Strait ⁠of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.

Iran’s military, in response, warned U.S. forces on Monday not to enter the strait, adding that its forces would “respond harshly” to any threat.

Trump has made securing a nuclear deal with Tehran a priority, but ​Iran wants to defer nuclear ​talks until after the ⁠war and first lift rival blockades on Gulf shipping.