Brent Crude gained as much as 1% to as high as $96.9 a barrel, while the West Texas Intermediate also crossed the mark of $90 to trade near the $92 a barrel mark.
The US has said that it launched strikes against three Iranian tankers over the weekend, destroying one, which sank in the Gulf of Oman, in retaliation to Iran’s attack on US naval warships with ballistic missiles.
Iran has also declared a new restricted zone outside the Strait of Hormuz, according to its top security official, which will be officially announced in the coming days, according to Press TV reports. The restricted zone is likely to begin from the US navy blockade line and extend into parts of the Persian gulf.
Although Iran claims that it also targeted three tankers, there is no independent confirmation of the same.
US Energy Secretary Chris Wright said that there will be no let up in US naval presence in the Persian Gulf, which now has the most important aim of not allowing any Iranian oil exports and then to ensure safe passage of commercial vessels. He claimed last week that millions of barrels were exiting the Strait daily, although official data from Kpler stated that only one commercial tanker managed to cross the Strait on Saturday.
US equity markets will remain shut for trading on Monday, on account of the Labor Day holiday. Therefore, trading in other asset classes is also likely to remain thin.(With Inputs From Agencies)
