Global crude oil prices rose over 4% to approach $80 per barrel as tensions escalated between the US and Iran. Brent crude, the international benchmark, increased by $3.28 to nearly $80 per barrel. Similarly, the US benchmark West Texas Intermediate (WTI) climbed 4.55% to $74.66 per barrel.
The surge followed reports that Iran claimed the closure of the Strait of Hormuz until further notice, a statement denied by the US Central Command. President Trump’s remarks on the ceasefire agreement with Iran added to market concerns, despite ongoing diplomatic talks between the two nations.
US forces conducted precision strikes on multiple Iranian targets, marking the fourth round of military action within a week. The strikes were in response to Iranian attacks on a container vessel. The situation escalated further as Iran’s Revolutionary Guard Corps targeted commercial ships, leading to US interception of a cruise missile and an attack drone.
The heightened tensions have sparked fears of a prolonged conflict that could disrupt energy supplies from a key oil-producing region. In response, domestic equity markets, including the Sensex and Nifty, opened lower. Asian markets also saw negative trends, with major indices like Nikkei, Hang Seng, and South Korea’s KOSPI dropping by up to 6%.
