Oil climbs to one-month high as US, Iran step up attacks in Strait of Hormuz

Oil prices rose 2 per cent on Tuesday to their highest in four weeks, as the US reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows.



Oil prices are now at their highest since the two countries signed a memorandum of understanding to end the war on Jun 17.



Two United Arab Emirates tankers were hit by two Iranian cruise missiles in the southern lane of the Strait of Hormuz in Omani territorial waters, the UAE Ministry of Defence said on Monday, killing one Indian crew member and wounding eight others.



Meanwhile, US President Donald Trump told reporters that the United States had reinstated its blockade of Iranian shipping, adding that he wanted the US to be reimbursed for protecting countries that it was helping in the Strait of Hormuz.



"The latest escalation, including the US reinstatement of the blockade and Iranian responses, has clearly injected fresh risk into the market," KCM Trade chief market analyst Tim Waterer said.