Explosions on two oil tankers near Iran send oil prices 2% higher

Oil prices rose as much as 4% on Thursday following attacks on two tanker ships off the coast of Iran that renewed fears of conflict in the Middle East after a series of strikes last month.

The vessels sustained significant damage and their crews have been evacuated, according to shipping agents and chartering sources. The attacks occurred in the Gulf of Oman, near the Strait of Hormuz, the world’s busiest sea lane for oil shipments.

It was not immediately clear who was responsible for the attacks, but they occurred against the backdrop of heightened tension in the Middle East and between the U.S. and Iran. The Iranian leadership has repeatedly threatened to block traffic in the Strait of Hormuz in retaliation for U.S. sanctions on the Islamic Republic.

Crude futures briefly jumped back above 3% after U.S. Secretary of State Mike Pompeo blamed Iran for the attacks.

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