Oil prices have risen after reports of explosions on Iran's Qeshm Island, with Brent crude futures increasing by $1.84 to $106.61 a barrel and US West Texas Intermediate crude gaining $1.60 to $98.06.
What happened
Iranian state media reported several explosions on Qeshm Island, the largest island in the Persian Gulf, on Monday. US President Donald Trump confirmed that the US military had struck an Iranian anti-aircraft facility on Monday night, stating that the facility was completed recently and was taken out by the US.
A US official said that President Trump has all options available at any time, and the US is in a strong position with control of the Strait of Hormuz and the Iranian economy collapsing. The official added that Trump will do what is best for the US.
The incident has raised concerns about the security of the Strait of Hormuz, a critical oil shipping route. Maritime security risks remain high in the area, with reports of vessel strikes, fires, and other security incidents. The International Maritime Organization has warned of uncertainty over the possible presence of naval mines, making it difficult to guarantee safety in the region.
