Oil prices rise as Iran conflict widens
Oil prices rose on Thursday amid growing concern over the prolonged closure of the Strait of Hormuz, as the US-Iran war chokes off vital Middle East oil and gas flows while production facilities limit output. Brent crude was trading up $1.67, or 2.05%, at $83.07 per barrel by 0141 GMT. US West Texas Intermediate crude rose $1.94, or 2.60%, to $76.60. The US–Iran war widened on Wednesday after a US strike hit an Iranian warship off Sri Lanka and US Senate Republicans backed President Donald Trump’s military campaign against Iran. They voted against a bipartisan resolution aiming to stop the air war and require Congress to authorise hostilities against Iran. Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries, has cut output by nearly 1.5 million barrels a day for lack of storage and an export route, officials told Reuters.