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Crude oil prices resumed their upward march in Monday’s trade, May 4, snapping a two-day losing streak after reports emerged that a tanker was hit by unknown projectiles in the Strait of Hormuz, shortly after the United States said it was ready to “guide” commercial ships through the key waterway.
Iran’s semi-official Fars news agency reported on Monday that two missiles had struck the warship near the port of Jask, located at the southern entrance to the strait, where Iran’s navy maintains a base. Mint could not independently verify the reports.
However, US Central Command denied the report in a post on X, saying, “No U.S. Navy ships have been struck. US forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports.”
Tracking the news of attacks, benchmark US crude rebounded by as much as $8.3 per barrel from the day’s low to climb back above the $107-a-barrel mark, while Brent crude, the international benchmark, gained 5.5% from previous close to hit the day's high of $114.19 per barrel.
US President Donald Trump, in a social media post on Sunday, promised that the United States would “guide” ships out of the strait, warning that Iranian efforts to block them “will, unfortunately, have to be dealt with forcefully.”
He described part of what he called “Project Freedom” in humanitarian terms, saying the move was designed to aid stranded seafarers, many aboard oil tankers and cargo ships, who have remained stuck in the Persian Gulf since the war began.
Iran’s state-run IRNA news agency later dismissed Trump’s “Project Freedom” as part of his “delirium,” while Iran’s military command said on Monday that all ships passing through the strategic waterway must coordinate with its forces.
Iran also warned that it would target any US forces entering the narrow strait and cautioned commercial vessels and oil tankers against moving without coordination with its military, underscoring heightened risks to global energy supply flows.
Tensions in the Middle East have resurfaced even as the ceasefire in the region continues to hold. Both the United States and Iran have failed to agree to each other’s terms, keeping the Strait of Hormuz effectively closed and disrupting crude supply flows, with the pain largely being felt by Asian countries that depend heavily on the Middle East for oil supplies.
The hopes of de-escalation in the region during the first half of April have quickly faded, as expectations that the two sides would reach an agreement to reopen the strait have failed to materialise. Meanwhile, continued attacks on commercial ships have kept maritime traffic near a standstill.
Both Iran and the United States have signalled that they are waiting for the other side to make the first move before agreeing to ease restrictions on shipping traffic. Last week, US President Donald Trump reaffirmed that Washington would maintain its naval blockade of Iranian ports to intensify economic pressure on Tehran.
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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