WEB DESK: Global oil prices surged sharply as rising tensions in the Strait of Hormuz fueled concerns over disruptions to energy supplies, sending Brent crude above $106 per barrel.
According to international reports, escalating friction between the United States and Iran, including the reported detention of commercial vessels and retaliatory actions, has heightened fears over the security of one of the world’s most critical energy routes.
Brent crude climbed nearly 5 percent to $106.80 per barrel, crossing the $100 mark for the first time in two weeks as markets reacted to the growing geopolitical risk.
US President Donald Trump reportedly said vessels transiting the Strait of Hormuz would require clearance from the US Navy, warning that any Iranian boats found laying naval mines would be destroyed. The remarks added to market anxiety over possible military escalation.
Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had seized two foreign commercial ships, further intensifying tensions in the region.
Analysts note the Strait of Hormuz handles nearly one-fifth of the world’s oil and gas shipments, making any disruption there a major threat to global energy markets and economic stability.
Reports also suggest a decline in commercial shipping traffic through the strategic waterway, raising fresh concerns over supply chains and energy security.
The uncertainty also weighed on US stock markets, where major indices slipped amid worries over soaring energy prices and broader economic fallout.
Experts warn that if tensions continue to rise, oil prices could climb further, increasing inflationary pressures and adding strain to the global economy.
