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The renewed hostilities posed fresh risks to ships seeking to navigate the Strait of Hormuz.
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The potential expense of a 20 percent charge to move oil and other goods through the strait has stirred concern among shippers.
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The Strait of Hormuz is a major oil shipping route and the epicenter of the U.S. and Israel's ongoing war with Iran.
Oil extended gains and Asian stocks were set to track Wall Street lower after the standoff between the US and Iran intensified, raising concerns that disruptions to energy supplies could accelerate inflation.
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