According to Khabaronline, After surpassing $70 on Wednesday, crude prices continued their upward trend amid heightened geopolitical tensions.
The increase comes after Iran reportedly practiced closing the strategic waterway during the joint drill with Russia, raising concerns in global energy markets about potential supply disruptions in the event of further escalation between Iran and the United States.
On Wednesday, oil prices surged nearly 5 percent due to fears of possible supply interruptions. Brent crude rose by $3.27 to settle at $70.69 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $3.20 to trade at $65.53 per barrel.
The Strait of Hormuz, one of the world’s most critical oil transit chokepoints, handles more than 20 percent of global oil shipments each day.
According to various reports, Iran has the capability to disrupt traffic through the strait, a move that analysts suggest could potentially drive oil prices as high as $150 per barrel.
At the time of writing, oil prices have moved beyond the $71 mark, reflecting ongoing market sensitivity to develop ments in the region.
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