Oil prices surge as US-Iran tensions escalate in Strait of Hormuz

Oil prices jumped sharply after the US and Iran exchanged fire in the Strait of Hormuz, a critical waterway for global oil shipments. Brent crude stayed above $100 a barrel, while US benchmark WTI rose 3%. The escalation follows Iran's creation of an agency to collect tolls from ships passing through the strait, and reports that major oil companies like Saudi Aramco and Abu Dhabi's Adnoc are still sneaking oil through the area despite the threat.

Markets have been whipsawed by conflicting signals from the US and Iran, with stocks dropping as investors shun risk. The renewed clashes in the strait have deepened fears about supply disruptions, pushing oil prices close to $96 a barrel and pressuring Asian stock markets.