Oil prices rise after US and Iran exchange fire in Hormuz strait

US President Donald Trump says the ceasefire between Washington and Tehran is still in place. Oil prices rise after US and Iran exchange fire in Hormuz strait Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. A man grabs a black fuel pump at a petrol station Oil prices rose on Friday after the US and Iran exchanged fire in the key Strait of Hormuz waterway. The US said it made self‑defence strikes in response to "unprovoked" Iranian attacks as US ships were heading out of the Gulf through the strait, which is south of Iran. Iran said the US had violated the ceasefire agreed in April, according to its state media. The global Brent oil benchmark price rose almost 3% to nearly $103 (£75) a barrel at one point before falling back to around $100. Despite the attacks, US President Donald Trump said on Friday the US-Iran ceasefire is still in place. Iranian state media has reported that the situation "is back to normal now". More than a fifth of the world's oil and gas usually passes through the Strait of Hormuz, which has been effectively blocked since the start of the US-Israel war with Iran. Before the conflict began, oil was trading at around $70 a barrel. Trump told reporters that three US destroyers were involved in the latest exchange of fire. Several Iranian small boats had been "completely destroyed" and missiles that had targeted the US ships were "easily knocked down", he said on social media. However, he also told ABC News that the Iran strikes were "just a love tap". Trump said that negotiations with Iran were ongoing, and repeated Washington's demand that Tehran must never have a nuclear weapon. "The talks are going very well, but they have to understand if it doesn't get signed, they're going to have a lot of pain", he told reporters. "I believe they want the deal more than I do." Iran's military initially accused the US of violating the ceasefire by targeting its ships, including an oil tanker, that were moving towards the Strait of Hormuz, according to Islamic Republic of Iran Broadcasting. It said "aerial attacks" were also carried out along the coastline near the strait, prompting Iranian forces to respond by attacking the US military vessels, inflicting "significant damage." The US military has denied that its ships had been hit. US Central Command also said it was not seeking to escalate the conflict. Traders view the ceasefire as a "fragile" one, and have reacted accordingly even as the US and Iran play down tensions, said National University of Singapore economics researcher Huifeng Chang. This week, Trump said that the war, which started on 28 February when the US and Israel attacked Iran, would be "over quickly" as Washington pushes for a framework for more detailed negotiations with Tehran. As well as causing an oil price surge, the conflict has also pushed up prices for products such as jet fuel, which has jumped by about half. British Airway's owner IAG said on Friday that it expected its fuel costs to hit €9bn (£7.8bn) this year, about €2bn higher than last year. IAG said it had agreed the price it would pay for about 70% of its fuel for the rest of the year, and it currently saw "no issues with fuel availability" in its main markets. Shares in the airline group fell by more than 5% in early trading in London. Chris Beauchamp, chief market analyst at investing platform IG, said: "The limited recovery in its shares since April signals limited market confidence in the potential for a full recovery, at least until the conflict is fully resolved. "But as last night's clashes show, even a start to negotiation seems a long way off." A woman stares at a flight departures board. She has long blonde hair and has a rucksack on her back and a carry on case in her hand. People urged not to cancel flights over fuel shortage fears A stock photo of lady in a brown jacket filling up her car with fuel at a petrol station. What's happening to UK petrol and diesel prices? How have you been impacted by rising oil prices? Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: Email: yourvoice@bbc.co.uk Send us images or video Tweet: @BBC_HaveYourSay And you can send us a video note  by  using this link .   Broadcasters in the two countries have yet to reach deals with Fifa, just weeks before the tournament is due to start. Molecules that can capture heat could be a useful technology to decarbonise heating. Commentators say it will take years or even decades to repair the damage. Iran's Foreign Minister Abbas Araghchi says the US opts for a "reckless military adventure" every time a "diplomatic solution is on the table". The Star Wars actor apologised and deleted the post, which contained an AI image of the president in a shallow grave. Through surging profits or soaring share prices, the war has been a boon for some firms. Iran accuses the US of violating the truce, alleging it targeted an oil tanker and carried out attacks on coastal areas. The US and Brazilian presidents did not appear together publicly, but traded compliments after their talks.