Oil rises, shipping in Strait of Hormuz slows after renewed US-Iran attacks

Oil prices climbed and commercial shipping through the Strait of Hormuz slowed after renewed exchanges between the US and Iran heightened security risks in the vital energy corridor.

Brent crude, the international benchmark, rose about 3.5% to nearly $79 a barrel on Sunday, extending gains to roughly 9% above prewar levels, while vessel traffic through the strait fell sharply, according to maritime data firm Kpler. The company said only 22 ships transited the waterway on Thursday compared with more than 130 vessels per day before the conflict.

The escalation followed US strikes on about 140 targets in Iran after Tehran attacked a container ship in the Strait of Hormuz. Iran said it retaliated by targeting US positions in the region.

Amena Bakr, head of Middle East research at Kpler, said recent attacks had erased confidence among commercial shippers, The New York Times reported.

"That confidence eroded very, very quickly," Bakr said. "We're back to square one when it comes to that situation," she said.

The International Energy Agency said in a report released Friday that a rebound in Gulf oil exports following a preliminary US-Iran ceasefire signed last month had helped increase global supplies but warned that a broader recovery remains "contingent on a swift de-escalation of renewed hostilities."

Bakr said energy markets have become more accustomed to recurring tensions in the region.

"The market has adjusted to this new normal," she said, adding: "The movement of prices hasn't really reflected the reality of the situation or the level of geopolitical risk."