Oil prices surged more than 5 per cent on Tuesday amid growing concerns over the ongoing crisis in the Strait of Hormuz, as geopolitical tensions in the Middle East continued to disrupt energy markets.
The sharp rise came as several countries resisted calls from US President Donald Trump to join efforts to secure the vital shipping route, which has been effectively shut by Iran. The strait is a crucial artery for global energy supplies, handling a significant share of the world’s oil and gas shipments.
Benchmark crude prices, including Brent and West Texas Intermediate, climbed above $100 per barrel before easing slightly. The rebound followed a drop in the previous session after the International Energy Agency (IEA) signalled that additional oil reserves could be released if necessary to stabilise markets.
The situation remains volatile, with continued attacks targeting energy infrastructure across the region. Drone strikes have hit oil facilities in the United Arab Emirates and Iraq, while an oil tanker off the coast of Oman was struck by an unidentified projectile. Explosions were also reported in Doha, adding to market anxiety.
Despite the energy shock, global equity markets showed resilience, with several Asian markets posting gains, supported in part by strong outlooks from major technology firms.
Investors are now closely watching upcoming central bank decisions, as policymakers weigh the inflationary impact of rising oil prices.
Analysts warn that prolonged disruptions in oil supply could trigger renewed interest rate hikes and slow global economic growth.
Although there have been tentative signs of movement in shipping through the strait, experts caution that the situation remains fragile, with no clear resolution in sight.
