Oil prices jump as Iran threatens strait of Hormuz shipping

Oil prices made more gains on Tuesday after an Iranian official said his country will "set fire to anyone who tries to pass through" the Strait of Hormuz as the conflict between his country and the US and Israel continues.

In afternoon trade in Asia, Brent crude was around 3.2% higher at more than $80 (£59.67) a barrel, while US-traded oil was up by about 2.6%.

It comes after oil and gas prices surged on Monday and as the US government is set to announce plans to deal with the rising cost of energy.

The narrow strait is crucial to the global economy as about 20% of the world's oil and gas passes through it.

Speaking on state TV, Ebrahim Jabbari, who is an adviser to the Commander-in-Chief of Iran's Islamic Revolutionary Guard Corps (IRGC), said ships "should not come to this region. They will certainly face a serious response from us."

Shipping through the Strait of Hormuz has come to a halt after several vessels were attacked in recent days.

As well as pushing up prices on global energy markets, the conflict has triggered a rise in how much its costs to transport oil.

The cost of hiring a supertanker to move oil from the Middle East to China reached an all-time high on Monday of more than $400,000 (£298,300).

That is almost double what it was last week, according to data from the London Stock Exchange Group.

US President Trump is facing concerns that the conflict in the Middle East in the region could push up the cost of living.

Trump is scheduled to meet Treasury Secretary Scott Bessent and Energy Secretary Chris Wright on Tuesday.

Secretary of State Marco Rubio said Washington will announce plans to deal with rising energy prices.

Source: BBC