Oil prices have soared above $106 a barrel as tensions escalated between the United States and Iran in the Strait of Hormuz, a key global energy route.
International benchmark Brent crude hit $106.80 early Friday, up nearly five percent from its previous close, according to market data.
The increase follows a sharp slowdown in shipping through the strait, which carries about a fifth of the world’s oil and gas supplies.
The disruption comes after a series of confrontations between the US and Iran, including the seizure of commercial vessels.
According to reports, Iran’s Islamic Revolutionary Guard Corps captured two foreign cargo ships, while the US moved to block Iranian maritime trade.
US President Donald Trump said on Truth Social that he has ordered the Navy to take action against Iranian activity in the waterway.
“It is ‘sealed’ until Iran is able to make a deal!!!” He has written.
Shipping traffic has declined sharply, with only nine ships passing through on Wednesday, compared with an average of 129 ships a day before the conflict, according to UN Trade and Development data.
