United States Brent Oil Fund LP (NYSE:BNO) shares are climbing on Monday as crude prices climbed following new U.S. guidance urging American commercial ships to steer clear of Iranian waters near the Strait of Hormuz, a warning that came the a day after Iran shared a new war‑game video.
Why Oil Prices Are Rising
The U.S. issued updated safety guidance for vessels traveling through the Strait of Hormuz as tensions with Iran remain elevated over Tehran's nuclear program, Reuters reported.
The Maritime Administration advised U.S.-flagged ships to keep as much distance as possible from Iran's territorial waters and to verbally refuse any request from Iranian forces to board. The agency also told crews not to physically resist if boarding does occur.
A Region With A History Of Flashpoints
Iran has repeatedly threatened to shut down the Strait of Hormuz and has previously seized commercial ships and tankers it accused of smuggling. A portion of the strait falls within Iran's territorial waters, making it a frequent point of friction.
The advisory comes at a moment of mixed signals: Iran's foreign minister said last week that U.S.-mediated nuclear talks were off to a "good start," yet Washington has made clear it wants any negotiations to also address Iran's missile program, regional activities and human‑rights issues.
Adding to the pressure, President Donald Trump issued an executive order on Friday imposing a 25% tariff on imports from any country that buys goods from Iran, further tightening economic constraints.
BNO Price Action: United States Brent Oil shares were up 1.56% at $32.52 at the time of publication on Monday. The stock is approaching its 52-week high of $33.33, according to Benzinga Pro.
Image: Shutterstock
