Crude prices, profits soar as US, Iran resume fighting in Strait of Hormuz

(Originally published May 8 in “What in the World“) So much for the ceasefire.

U.S. and Iranian forces resumed trading fire Thursday, with the U.S. attacking two Iranian ports on the Strait of Hormuz as part of what it said were “self-defense” strikes against Iranian drone and missile attacks against three U.S. destroyers.

Trump claimed the ceasefire was still in effect, however, while also warning “we’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their deal signed, FAST!”

Brent crude futures jumped 3% on the news, and spot oil prices have risen 37% since the war began. Despite producing 4% less oil and gas to sell, Shell said its first quarter profit soared 24% year-on-year, to $6.92 billion.