Iran Extends Gulf Attacks, Oil Prices Surge Amid Hormuz Strait Concerns

Washington D.C. Iran has expanded its attacks in the Gulf countries after America attacked. As a result, the price of crude oil has risen sharply on Monday as the energy transportation through the Strait of Hormuz has become a threat.

By 11:11 PM Greenwich Mean Time, Brent crude futures rose by $2.34, or 3.08 percent, to $78.35. Similarly, American West Texas Intermediate crude rose by $2.21 per barrel, or 3.09 percent, to $73.62.

The fear of rising inflation due to escalating conflict in West Asia and the possibility of central banks raising interest rates have increased. For this reason, the value of the US dollar has also increased compared to other major currencies.

The US dollar has risen by 0.1 percent to 161.92 yen compared to the Japanese yen. The euro has weakened by 0.1 percent to $1.1403, while the British pound has also fallen by 0.1 percent to $1.3383. Similarly, the Australian dollar has fallen by 0.1 percent to $0.6942 and New Zealand's Kiwi dollar has also fallen by 0.1 percent to $0.5757.

Asian stock markets have declined on Monday as the war in the Gulf region intensifies and Iran claims to have closed the important Strait of Hormuz. The dollar's value has risen along with bond yields as investors anticipate the US Federal Reserve will raise interest rates. This situation has emerged just one day before Federal Reserve Chairman Kevin Warsh faces Congress for the first time in his new role.

Over the weekend, Tehran expanded its attacks to Qatar and the United Arab Emirates. Meanwhile, America has launched further attacks on Iran. This is the latest series of attacks and counter-attacks that began over the transportation through this waterway.

US President Donald Trump said on Sunday that 'the Strait of Hormuz is open for commercial traffic.' However, Iran had previously announced that 'an attack was carried out on a ship for using a route without permission' and that the waterway had been closed.

According to data from the ship tracking company Kepler, only 6 ships crossed the Strait on Sunday. This is the lowest number in the last five weeks.

The escalating attacks have cast further doubt on the future of the interim agreement reached between the US and Iran last month. The agreement aimed to reopen the waterway and end the war after further negotiations for 60 days.