Global crude oil prices surged more than 4 per cent on Monday, trading close to the $80-per-barrel mark, as renewed military strikes between the United States and Iran heightened concerns over possible disruptions to oil supplies from the Middle East.
International benchmark Brent crude gained more than 4 per cent, rising $3.28 to nearly $80 per barrel. US benchmark West Texas Intermediate (WTI) also climbed 4.55 per cent, or $3.25, to $74.66 per barrel.
The sharp rise in prices followed reports that Iran had announced the closure of the Strait of Hormuz “until further notice”, a claim rejected by the US Central Command (Centcom), which said it had conducted additional strikes to safeguard freedom of navigation through the strategic waterway.
Market sentiment weakened further after US President Donald Trump indicated that the interim ceasefire agreement and Memorandum of Understanding with Iran were effectively no longer in force, even as diplomatic efforts between the two countries continued.
On Sunday, US forces carried out precision strikes on dozens of targets at multiple locations in Iran, according to Centcom. The operation marked the fourth round of US military action against Iran within a week.
Centcom said the strikes were launched in response to Iranian attacks on a Cyprus-flagged container vessel. Reports also indicated that Iran’s Islamic Revolutionary Guard Corps targeted commercial ships again, following which US forces intercepted an Iranian cruise missile and an attack drone.
The escalation has raised concerns over a prolonged conflict that could disrupt energy supplies from the Middle East, one of the world’s most important oil-producing regions.
Meanwhile, domestic equity markets opened lower on Monday, with both the Sensex and Nifty trading in the red. Asian markets also witnessed broad-based declines, with major indices including Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI falling up to 6 per cent.
(IANS Inputs)
