Crude oil climbs more than 3% as U.S., Iran fight for control of Strait of Hormuz

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Crude oil futures rose more than 3% Monday, pulling back from earlier gains of as much as 5% following renewed military ‌strikes between the U.S. and Iran that have slowed ship traffic on the Strait of Hormuz to the lowest in five

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International crude oil prices surged over 3% due to escalating military tensions between the U.S. and Iran in the Strait of Hormuz. Vessel traffic through the strait has fallen to a five-year low, raising concerns over supply chain disruptions. Investors are re-evaluating their strategies as geopolitical risks amplify volatility in energy markets.

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The heightened military presence in the Strait of Hormuz has created significant bottlenecks for global energy transport. With a substantial portion of the world's oil passing through this chokepoint, any sustained conflict directly threatens supply stability. Markets are currently pricing in a risk premium, and the duration of these tensions will determine the extent of the inflationary impact on global energy costs.

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