Tehran: The price of Brent oil increased by around 5% as explosions were heard on Iran's Qeshm Island in connection with operations targeting "hostile objects" at the entrance to the Strait of Hormuz. The price of a barrel of Brent oil reached $82.3 as of 2240GMT, up 4.9%, while the price of West Texas Intermediate (WTI) crude rose 4% to $78.

According to Anadolu Agency, the price of the EU gas benchmark index for natural gas also soared by 11.5% to £58.4 per megawatt. Late Thursday, two explosions heard in southern Iran were linked to an operation against what were described as "hostile targets" near the entrance to the Strait of Hormuz, according to Iran's semi-official Tasnim News Agency.

Previously, Iran announced on Wednesday that an agreement with Oman to reopen the critical waterway was close, raising hopes of easing tensions in the Middle East and reducing inflationary pressure from elevated energy prices.