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Brent Crude Tops USD114 After Missiles Strike US Navy Ship
(MENAFN) Brent crude futures rocketed more than 5.5% toward $115 per barrel on Monday after Iranian media reported that missiles had struck a US Navy vessel near Jask Island, sending shockwaves through global energy markets and dramatically intensifying security fears around the Strait of Hormuz.
Having briefly approached the $115 threshold, prices settled at approximately $114 as of 1025GMT.
The surge was ignited by reports from Iran's semi-official Fars News Agency alleging that two missiles struck a US Navy vessel near Jask after it disregarded warnings from the Islamic Revolutionary Guard Corps (IRGC) to stand down. Iran's navy separately claimed it had blocked US warships from entering the Strait of Hormuz zone, stoking fears of a broader and potentially uncontrollable military confrontation at one of the world's most strategically vital energy corridors.
The developments amplified already acute concerns over the potential disruption of commercial shipping lanes and energy flows through the strait — a lifeline route for crude oil, refined petroleum products, and liquefied natural gas originating from Gulf producers.
Trading volatility has escalated across recent sessions as market participants price in swelling war-risk premiums, prospective shipping bottlenecks, and the prospect of significantly tighter seaborne energy supply chains.
Monday's flashpoint follows a series of prior warnings issued by Tehran, which had cautioned that any US military assets approaching or transiting the Strait of Hormuz without prior coordination would face targeting. US President Donald Trump had previously unveiled a naval escort initiative — branded Project Freedom — designed to shepherd civilian vessels safely through the contested passage.
Notwithstanding the rapid deterioration on the ground, Tehran indicated it is actively reviewing Washington's latest 14-point diplomatic proposal, preserving a narrow window for a negotiated off-ramp. Oil markets, however, appeared squarely focused on immediate threat dynamics in the wake of the reported missile strike near Jask.
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