Due to ongoing tensions in West Asia, crude oil prices in the international market have shown an upward trend for the fourth consecutive day. Brent crude surged to $105.86 per barrel today.
Similarly, West Texas Intermediate (WTI) crude also crossed the $100 per barrel mark, reaching over $97 per barrel. However, a slight decline in crude oil prices was recorded later. The postponement of peace talks between the United States and Iran, along with the blockade of the Strait of Hormuz, has nearly halted crude oil supply through this major maritime route, with no signs of resumption in the near future.
This has contributed to the continuous rise in crude oil prices. Today, Brent crude started trading at $101.66 per barrel, quickly jumping to $105.86 per barrel. As of 9:15 AM Indian time, Brent crude was trading at $103.76 per barrel, up by 1.80 percent.
Similarly, WTI crude began trading at $92.69 per barrel, surpassing the $92 per barrel mark, and later rose to $97.22 per barrel. However, a slight decline was also noted later. By 9:15 AM Indian time, WTI crude was trading at $94.97 per barrel, up by 2.13 percent.
It is noteworthy that the conflict that began in West Asia at the end of February has shaken the global petroleum-based energy market. The near closure of the Strait of Hormuz has led to a significant drop in oil and gas supply from the Persian Gulf. The United States has imposed a blockade to exert pressure on Iran, while Iran is attempting to keep the Strait of Hormuz closed to international traffic.
In this effort, Iranian gunboats fired on cargo ships near Oman on Wednesday. Experts suggest that immediate peace talks between the United States and Iran do not seem likely. Although U.S.
President Donald Trump announced a ceasefire, he has exacerbated tensions by stating that the blockade in the Strait of Hormuz will continue. On the other hand, Iran has consistently stated that it will respond firmly to U.S. Threats.
By firing on cargo ships near Oman, Iran has indicated that it will not bow to U.S. Threats.
Given the obstinate attitudes of both countries, it appears that the movement of cargo ships and oil tankers through the Strait of Hormuz will not be possible in the immediate future. In such a scenario, disruptions in crude oil supply worldwide will continue, resulting in rising crude oil prices.
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