New Delhi: Global oil prices surged to their highest levels in four weeks after renewed military escalation between the United States and Iran heightened concerns over energy supplies moving through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Brent crude rose above the USD 80 mark, trading at around USD 83.85 per barrel, while West Texas Intermediate (WTI) crude gained more than two percent to reach USD 79.79 per barrel. The rally followed a sharp jump in the previous trading session, when Brent crude settled at USD 83.30 per barrel after recording its biggest single day gain since May 2020.
The latest spike comes as hostilities between Washington and Tehran resumed after a temporary ceasefire, raising fresh concerns about disruptions to global crude supplies. Markets reacted strongly to the growing uncertainty surrounding the Strait of Hormuz, a strategic waterway through which nearly one fifth of the world’s oil and natural gas shipments pass during normal conditions.
US President Donald Trump announced that Washington had reinstated a naval blockade on Iranian shipping through the Strait of Hormuz and said military operations against Iran would continue. He also indicated that the United States would begin charging other vessels for security and safe passage through the waterway, signalling a significant departure from its long standing policy of supporting unrestricted navigation.
The conflict intensified further after the US Central Command carried out strikes on multiple locations across Iran, including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas. In response, Iran’s Islamic Revolutionary Guard Corps claimed responsibility for attacks on two United Arab Emirates linked tankers transiting the Strait of Hormuz, alleging they were operating under US military guidance.
The renewed confrontation has rattled global energy markets, with investors closely monitoring developments in West Asia. Analysts warn that any prolonged disruption to shipping through the Strait of Hormuz could tighten global oil supplies, drive prices even higher, and add further pressure to economies already grappling with elevated energy costs and geopolitical uncertainty.
