Oil prices climbed 4%, with Brent hovering near $95, after U.S. Secretary of State Marco Rubio said the U.S. would continue to protect commercial shipping in the Strait of Hormuz amid ongoing strikes on Iran.
Key facts
- Oil prices jumped 4% following Rubio's comments.
- Brent crude hovered near $95 per barrel.
- The U.S. has launched strikes against Iran for 11 consecutive days.
- The stated aim is to 'degrade Iran's ability to threaten commercial shipping.'
- Rubio said the U.S. will 'continue to protect shipping' in the Strait of Hormuz.
Oil prices rose sharply, jumping 4%, after U.S. Secretary of State Marco Rubio said the United States would continue to protect commercial shipping, according to CNBC. The move came against the backdrop of ongoing American military action against Iran.
Brent crude hovered near $95 per barrel following Rubio’s remarks, CNBC reported. The comments specifically referenced protecting shipping in the Strait of Hormuz, a critical waterway for global energy transit.
According to CNBC, the U.S. has launched strikes against Iran for 11 consecutive days. Washington has cited a need to ‘degrade Iran’s ability to threaten commercial shipping’ as the justification for the sustained campaign.
Rubio’s pledge that the U.S. will ‘continue to protect shipping’ signaled no immediate end to the American involvement, a message that markets appeared to read as pointing to continued regional tension.
The price reaction underscored how sensitive energy markets remain to developments involving Iran and the shipping lanes around it. Traders responded quickly to the prospect of a prolonged U.S. commitment in the area.
As reported by CNBC, the combination of the 11-day strike campaign and Rubio’s statement kept crude elevated, with Brent sitting close to the $95 mark.
Why it matters
Oil is a foundational input for the global economy, and sharp price swings driven by conflict can feed through to fuel costs and inflation. Tension around the Strait of Hormuz, a key route for energy shipments, means any escalation can quickly ripple into markets worldwide.
Frequently asked questions
How much did oil prices rise?
According to CNBC, oil prices jumped 4% after Rubio's comments, with Brent crude hovering near $95 per barrel.
Why is the U.S. striking Iran?
CNBC reports the U.S. has cited a need to 'degrade Iran's ability to threaten commercial shipping.' The strikes have run for 11 consecutive days.
What did Rubio say?
Secretary of State Marco Rubio said the U.S. would 'continue to protect shipping,' including in the Strait of Hormuz, according to CNBC.