Crude oil prices shot up nearly 6% Monday after the U.S. announced “Project Freedom” and started escorting cargo ships through the Strait of Hormuz, only to be met with resistance from Iran.
U.S. helicopters blew six small armed Iranian boats out of the water after the gun boats attacked six ships while Iran used drones to set a United Arab Emirates oil port ablaze. It was the biggest escalation of fighting since the ceasefire started four weeks ago.
The U.S. military said it destroyed the boats and intercepted Iranian cruise missiles and drones fired by Tehran as it sought to thwart a new U.S. naval effort to open shipping through the Strait of Hormuz reported Reuters.
Global benchmark Brent crude rose $6.27 or 5.8% and settled at $114.44 per barrel.
West Texas Intermediate in the U.S. gained $4.48 or 4.4% and finished the day’s trading at $106.42 per barrel on the New York Mercantile Exchange.
Natural gas prices