WEB DESK: Global oil prices rose sharply Tuesday as geopolitical tensions in the Strait of Hormuz continued to escalate, pushing main crude benchmarks above the $100 mark.
The increase comes after several nations resisted former President Donald Trump’s call for international assistance to secure the vital shipping route, while Iran maintained pressure on nearby oil-producing countries. Tuesday’s gains partially reversed losses from Monday, when the International Energy Agency (IEA) suggested that additional reserves could be released if supply disruptions worsen.
Stock markets, meanwhile, extended Monday’s rallies, with technology shares buoyed by Nvidia’s projection of at least $1 trillion in revenue through 2027.
Investors are also keeping a close eye on a series of central bank meetings scheduled this week. Analysts warn that a surge in crude prices could prompt renewed interest rate hikes as authorities aim to contain inflationary pressures.
Trump emphasized over the weekend that reopening the Strait of Hormuz “should have always been a team effort, and now it will be,” highlighting the need for allied cooperation to secure the crucial passage.
