Crude oil prices today: The entire global market was shaken by a statement from Donald Trump
Crude Oil Price Hike: The US carried out airstrikes on more than 80 Iranian military sites and reimposed sanctions on oil sales. Iran has also warned of retaliatory action.
After a period of decline, crude oil prices are rising sharply again. Global markets have been stirred up following US President Donald Trump's announcement to scrap the peace deal between the US and Iran. This has triggered a fresh surge in crude oil prices in the global market. After rising by up to 5% in the previous trading session, crude oil prices saw a further jump of 1% on Thursday.
What is the price of crude oil today?
Following a recent surge, Brent crude is trading around $78.80 per barrel today. Meanwhile, US crude (WTI crude) has also risen by 1.01% to reach $74.26 per barrel and is gradually moving towards the crucial $80 mark. Yesterday, the July futures contract on India's Multi Commodity Exchange closed at ₹7,155 per barrel, recording a significant gain of approximately 6.71%.
Why are prices suddenly rising?
Renewed military tensions between the US and Iran have raised the risk of disruptions to oil supplies passing through the Strait of Hormuz. This maritime route is crucial for energy shipments; approximately 20% of the world's crude oil travels through this narrow passage to reach various parts of the globe.
Another reason for the sudden surge in oil prices is the US Treasury Department's decision to revoke the waivers that previously allowed Iran to legally sell crude oil. This move has heightened concerns regarding a potential shortage of crude oil in the global market.
Ship movement halted in Hormuz—
According to a Bloomberg report, the movement of oil tankers and LNG vessels through the Strait of Hormuz has been suspended due to escalating tensions between the US and Iran. In light of the risks, many ships are now rerouting via the 'Cape of Good Hope'. The Strait of Hormuz is a vital maritime route for energy transport, relied upon by numerous nations ranging from Saudi Arabia and Kuwait to Iran and Iraq. Consequently, a halt in traffic here could lead to a sudden and massive global shortage of crude oil.
