NEW YORK: Oil prices rose more than 1percent on Monday after the US Department of Transpor-tation issued an advisory to US-flagged vessels to stay as far as possible from Iranian territory while voyaging through the Strait of Hormuz and Gulf of Oman.
Brent crude oil futures were up 89 cents, or 1.3percent, at USD68.94 a barrel by 11:24 a.m. EST (1624 GMT). US West Texas Intermediate crude rose 83 cents, or 1.3percent, to USD64.38. The US DOT’s Maritime Administration agency noted that vessels going through the Strait of Hormuz and Gulf of Oman have historically faced the risk of being boarded by Iranian forces, including as recently as February 3. The agency advised US-flagged ships to stay close to Oman while eastbound in the Strait of Hormuz.
The advisory renewed concerns that tensions between the US and Iran could lead to oil supply disruptions. About a fifth of the oil consumed globally passes through the Strait of Hormuz between Oman and Iran.
