Oil prices rise as US, Iranian strikes threaten Strait of Hormuz reopening

SaveSharefacebookxwhatsapp-strokecopylinkBoats sit anchored off Oman's northern Musandam Peninsula near the Strait of Hormuz on June 27, 2026 [AFP]By John PowerPublished On 29 Jun 202629 Jun 2026Oil prices have climbed following the latest flare-up in hostilities between the United States and Iran.Brent crude, the primary international benchmark, rose about 0.9 percent on Monday after tit-for-tat US and Iranian strikes over the weekend renewed doubts about a return to normal shipping in the Strait of Hormuz.Recommended Stories list of 4 itemslist 1 of 4Father and son pulled out alive four days after Venezuela earthquakelist 2 of 4Pakistan says its security forces killed 29 fighters along Afghan borderlist 3 of 4‘Heroes for the future’: Canada celebrates team’s historic World Cup runlist 4 of 4Late goal gives Canada first-ever World Cup knockout stage victoryend of listBrent futures for August delivery stood at $73.21 a barrel as of 03:30 GMT, 127 cents higher than the day before the US and Israel launched their war on Iran on February 28.“Brent’s partial rebound this morning reflects a market that had perhaps run too quickly on ceasefire optimism,” Fabien Yip, a market analyst at IG in Sydney, Australia, told Al Jazeera.“Oil had nearly unwound its entire war premium, despite an MoU with no enforcement details and ongoing strikes. Thursday’s attack on a commercial vessel was a reality check, and this weekend’s tit-for-tat exchanges have compounded that,” Yip said.Asian stock markets were mixed on Monday morning, with losses in Tokyo and Seoul and gains in Hong Kong and Taipei.Japan’s benchmark Nikkei 225 was 0.7 percent lower, while South Korea’s Kospi was down 1.9 percent.Japanese and Korean stocks tied to the AI boom saw some of the biggest losses amid heated debate about whether tech firms’ massive investments in the emerging technology will pay off.Japanese tech giant SoftBank Group fell about 5 percent, while Advantest Corporation, a key maker of semiconductor testing equipment, slumped 3.7 percent.South Korean memory chip giants Samsung Electronics and SK Hynix dropped about 5 percent and 4 percent, respectively.Hong Kong’s benchmark Hang Seng Index and Taiwan’s Taiex both rose, gaining 2.2 percent and 1.4 percent, respectively.“Quarter-end profit-taking is adding to the selling pressure, with investors locking in gains from what has been a remarkable run. The Kospi is up roughly 95 percent this year, and the Nikkei up 37 percent,” IG’s Yip said.“The underlying concern, however, is whether the AI boom can continue to translate into sustained earnings growth, or whether margin pressure is arriving sooner than the market anticipated.”US Central Command announced strikes against Iran on Friday and Saturday, citing Iranian attacks on two commercial vessels in the Strait of Hormuz, which in peacetime serves as a conduit for about one-fifth of the global trade in oil and liquified natural gas.Iran responded to the strikes by launching a series of missiles and drones targeting US military assets in Bahrain and Kuwait.Washington and Tehran agreed to cease their attacks and renew their negotiations on ending the war, multiple media outlets reported late on Sunday, citing unnamed US officials.Axios, citing an unnamed senior US official, reported that the sides would hold talks in Doha, Qatar, on Tuesday.Iran has yet to comment on the reported agreement to cease hostilities or the planned talks.US President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding to end the war on June 17, but the agreement has repeatedly come under strain due to flare-ups in hostilities and disagreements about the meaning of the text.