KEY POINTS
- Brent crude surged above $84 per barrel while U.S. crude rose past $76 following escalating tensions in the Middle East.
- Investor fears intensified after Iran claimed it had closed the Strait of Hormuz, a key route for nearly 20 percent of global oil shipments.
- Analysts warn oil prices could rise to $100 or even $120 per barrel if shipping disruptions persist.
Global oil prices rose sharply on Tuesday as escalating tensions in the Middle East raised concerns about a prolonged conflict and the potential disruption of global energy supply.
Brent crude, the international oil benchmark, climbed to $84.24 per barrel as of 7:00 a.m. Eastern Time, marking an increase of 8.36 percent. At the same time, the United States benchmark, West Texas Intermediate crude, crossed the $75 mark to trade at $76.93 per barrel, reflecting an 8 percent gain for the day.
The surge in prices followed a nearly 10 percent increase recorded a day earlier, as investors reacted to signals that the conflict involving Iran could last longer than initially anticipated.
Trump signals military campaign could last longer
Market anxiety intensified after comments by U.S. President Donald Trump suggested that the military campaign against Iran, known as “Epic Fury,” might extend beyond the originally projected timeline.
Speaking late Monday, Trump indicated that while the operation was initially expected to last four to five weeks, the United States had the capacity to sustain it for a much longer period if necessary.
His remarks heightened uncertainty in global energy markets, with traders increasingly worried about the possibility of prolonged instability in a region that remains central to global oil supply.
Further pressure on the oil market emerged after Iran announced that it had closed the Strait of Hormuz, a strategic waterway between Iran and Oman through which roughly one-fifth of the world’s oil and gas trade passes.
The announcement came in response to joint military strikes carried out by the United States and Israel.
Ebrahim Jabbari, a senior adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps, warned that Iranian forces would target and destroy vessels attempting to pass through the strait.
Despite the claim, the United States Central Command disputed the assertion, with a senior U.S. military official stating that the waterway remained open.
Even so, shipping activity through the corridor has slowed significantly, as tanker operators and energy traders remain cautious about navigating the route amid rising tensions and security threats.
