New tensions in Strait of Hormuz spike oil prices; stocks rise

Published Aug 7, 05:31 AM UTC

New tensions in the Strait of Hormuz have left markets on edge, reversing earlier optimism around a US-Iran peace deal. Oil prices spiked, with Brent crude rising to $83 per barrel on Friday morning, after Iran struck what it described as 'hostile targets' near Qeshm Island. The development came as Iran and Oman brokered an agreement on broad terms to open up the strait, under which ships entering would travel closer to Iran and outgoing vessels closer to Oman. Tehran aims to prohibit US and Israeli vessels from transiting and require compensation from hostile countries. Iran's foreign ministry spokesman said the deal with Oman would not guarantee safe navigation, citing the US blockade of Iran's ports. President Trump claimed the US is 'knocking the hell out of' Iran but expressed a preference for a deal. Despite the tensions, stock markets rose.