Global crude oil prices surged on Wednesday following US strikes on Iranian military sites near the Strait of Hormuz, causing concerns about potential disruptions to energy supplies. Brent crude rose by about 1% to $93.26 per barrel, while US West Texas Intermediate (WTI) crude increased by 0.97% to trade around $90 per barrel. The US military conducted self-defence strikes on Iranian air defence and radar sites in response to an incident involving a downed US Army helicopter.
The escalation in tensions between the US and Iran has impacted investor sentiment, leading to selling pressure in global equities. Reports indicate that US crude oil inventories have decreased for the eighth consecutive week. Meanwhile, Asian markets experienced declines, with Japan’s Nikkei and Hong Kong’s Hang Seng falling over 1% and South Korea’s KOSPI plunging nearly 4%.
Wall Street closed lower on Tuesday, with the Nasdaq Composite dropping by 0.97% and the S&P 500 slipping by 0.26%. However, domestic equity markets in India traded higher in the morning session, with benchmark indices gaining up to 0.5% in early trade.
