International Oil Market Reacts to Iran's Claim of Missile Strike on US Warship

New York. The international oil market has seen a big reaction after Iranian state media claimed that a missile was fired at a US warship. Immediately after the news, the price of Brent crude, the international benchmark for oil, rose by more than $4 per barrel, reaching $114. This is an increase of more than 5 percent from the opening price of the day. However, after the US Central Command (Centcom) denied the claim of the attack, the price started to decrease slightly and stabilize. Earlier, Donald Trump had announced a plan to safely bring out ships stranded in the Gulf region, which he called a humanitarian initiative. This plan was brought amidst the ongoing tension in the Strait of Hormuz. The Strait of Hormuz is one of the world's important waterways, from where about 20 percent of the world's oil and gas supply occurs. If there is further military conflict in this region, the possibility of resuming supply will decrease. It is estimated that the price of oil may become even higher.