Oil prices jumped sharply on Monday as hostilities between the US regime and Iranian authorities intensified over control of the Strait of Hormuz. Brent crude futures for September delivery rose over 4% to $79.17 per barrel, the highest since June 22.

The US Central Command (CENTCOM) claimed on Sunday it had conducted dozens of strikes on Iran to degrade its ability to attack vessels in the strait, following accusations that Iranian forces attacked a Cyprus-flagged container ship, the MV GFS Galaxy.

CENTCOM stated: "The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it. US forces are postured to ensure freedom of navigation." The statement allegedly aimed to justify the escalation.

Iranian forces responded with missile and drone attacks against the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. The Iranian Persian Gulf Strait Authority reiterated that vessels using unauthorized routes would bear responsibility for any consequences.

Maritime traffic in the strait has plummeted: only six vessels crossed between Thursday and Friday, compared to 18-22 daily earlier this month. Before the conflict, about 130 ships transited daily.

Oil prices, which had returned to pre-conflict levels after a June memorandum, are now about 9% higher than before the initial US-Israeli strikes in late February. Analysts expect Brent to remain in the upper $70s through August-September amid geopolitical uncertainty.

Major Asian stock markets fell on Monday: Japan's Nikkei 225 dropped over 1%, South Korea's Kospi plunged over 5%, and Hong Kong's Hang Seng dipped about 0.2%.

Source: www.aljazeera.com