LONDON – Web Desk: Oil prices surged in global markets following Iran’s announcement that it would close the Strait of Hormuz, as tensions escalated after fresh US strikes on Iran, according to Reuters.
Investors increased oil purchases due to rising tensions in the region and concerns over energy shipments, driving crude prices higher. Brent crude rose by $2.30 (2.47%) to $95.40 per barrel, while US West Texas Intermediate crude increased by $2.60 (2.89%) to $92.63 per barrel. US crude futures saw an increase of over $3 during early trading, reflecting growing investor concerns.
The Strait of Hormuz is a critical maritime route for global energy shipments, supplying oil to a large portion of the world. Any disruption to this vital waterway could immediately impact the global economy, energy markets, and oil prices. According to analysts, if tensions escalate further or maritime traffic through the Strait of Hormuz is affected, oil prices could see additional increases, with effects on economies worldwide.
