Oil prices rise after US and Iran exchange fire in Hormuz strait

Oil prices rose on Friday morning trade in Asia after the US and Iran exchanged fire in the key Strait of Hormuz waterway.

The US military said it intercepted what it called unprovoked Iranian attacks - including missiles, drones and small boats - and carried out self‑defence strikes as its ships were heading out of the Gulf through the strait.

The price of global oil benchmark Brent rose by 2.3% to $102.40 (£75.53) a barrel, while US-traded crude was 2.1% higher at $96.80.

The flare-up further endangers the US-Iran ceasefire, which President Donald Trump extended indefinitely on 21 April to allow more time for peace talks.

This week, Trump said that the war, which started on 28 February when the US and Israel attacked Iran, will be over quickly as Washington pushes for a framework for more detailed negotiations with Tehran.

Energy prices have surged since the start of the conflict after Iran threatened to attack ships in the critical Strait of Hormuz trade route in retaliation to the US-Israeli strikes.

More than a fifth of the worlds oil and gas shipments usually pass through the waterway.