Oil prices jump nearly 5% as US-Iran strikes raise Hormuz fears

• Fresh attacks weaken expectations of renewed diplomacy and normalization of regional oil flows

Brent crude oil prices rose about 5% on Monday after renewed US-Iran attacks heightened concerns over shipping and energy supplies through the Strait of Hormuz.

The international benchmark climbed to around $80 per barrel as of 0550GMT after both sides carried out fresh missile and drone strikes over the weekend.

The US said it launched its fourth round of attacks against Iran in a week on Sunday in retaliation for an Iranian attack on a Cyprus-flagged container ship.

The US Central Command said it struck dozens of targets to weaken Iran's ability to threaten commercial vessels transiting the strategic waterway.

Iran, meanwhile, declared that the Strait of Hormuz would remain closed “until further notice,” though CENTCOM rejected the claim.

Iran's Islamic Revolutionary Guard Corps said early Monday that it struck two military bases in Kuwait, claiming damage to fuel tanks, Patriot air defense systems, and radar equipment.

Tehran also said it attacked US military facilities in several Gulf countries, while explosions were reported in the southern Iranian port city of Bandar Abbas shortly before the US Central Command announced the conclusion of its latest strikes.

Iran's army later claimed it shot down a US drone over Bandar Abbas.

Oil prices have rebounded since last week as renewed hostilities reversed part of the losses triggered by an interim US-Iran agreement that had raised expectations of safer transit through the Strait of Hormuz and increased regional energy supplies.

The latest escalation has also weakened hopes for renewed negotiations, with Tehran demanding that Washington first fulfill previous commitments on shipping through the Strait of Hormuz and Iranian oil exports.