Brent crude rises above $91 a barrel as uncertainty over the Strait of Hormuz and escalating US-Iran tensions fuels concerns about global energy supplies.
WEB DESK: Global oil prices rose as continued US-Iran tensions and uncertainty surrounding the Strait of Hormuz raised concerns about disruptions to international energy supplies.
According to Reuters, Brent crude rose 27 cents to $91.14 per barrel, while US West Texas Intermediate (WTI) crude gained 42 cents to reach $85.04 per barrel.
US-Iran tensions fuel supply concerns
The increase came after Iran indicated that it could adopt a more aggressive strategy, while the United States rejected an extension of a ceasefire agreement, according to the supplied report.
The developments have heightened uncertainty in global energy markets, with traders closely monitoring the possibility of further disruptions to crude oil supplies.
Strait of Hormuz remains key concern
The reopening of the Strait of Hormuz remains uncertain, while shipping traffic through the strategically important waterway is reportedly well below normal levels.
The Strait is a crucial transit route for global energy supplies, meaning any prolonged disruption could have a significant impact on international oil markets.
Further escalation could push prices higher
Market analysts have warned that a further escalation in tensions could produce additional pressure on global oil supplies and prices.
With uncertainty surrounding maritime traffic through Hormuz continuing, investors are closely watching developments between Washington and Tehran for signs of either de-escalation or further disruption.
For consumers and energy-importing economies, sustained higher crude prices could increase fuel and transportation costs and add to broader inflationary pressures.
