Oil prices jump 4% amid rising tensions over Strait of Hormuz ceasefire

New Delhi (The Uttam Hindu): Global crude oil prices jumped sharply on Thursday, fueled by concerns over the potential for a complete resumption of supplies from West Asia and doubts over the two-week ceasefire between the US and Iran, which could lead to continued restrictions on the crucial Strait of Hormuz sea route.

International benchmark Brent crude futures rose 3.31 percent to $97.89 per barrel in the morning. WTI crude jumped 4.2 percent to trade at $98.38 per barrel. On Wednesday, crude oil prices fell by 20 percent and fell below $100 per barrel, as there were hopes that a ceasefire between the US and Iran would ease tensions and reopen the Strait of Hormuz. The Strait of Hormuz, through which oil from countries like Iraq, Saudi Arabia, Kuwait and Qatar passes to the world, has been at the centre of this entire dispute.

According to reports, Israeli attacks on Hezbollah in Lebanon have further escalated tensions. Missile and drone attacks have also been reported in Kuwait, Bahrain, and the UAE. Following these incidents, Iran reportedly closed the Strait of Hormuz again. Shipping companies say they are hesitant to sail through this route until the terms of the ceasefire are fully clarified.

Iran has released maps to guide ships and, in collaboration with its Revolutionary Guards, has established safe routes. Meanwhile, the region's oil infrastructure remains under threat. Reports indicate that Iran attacked several targets in neighboring countries following the ceasefire, including a pipeline to Saudi Arabia. Meanwhile, Donald Trump has stated that US ships, aircraft, and military forces will remain deployed around Iran.

Talking about the stock market, the domestic market witnessed a decline again after the strong rise of the previous day. Meanwhile, till the time of writing this news, Sensex recorded a decline of 0.72 percent or more than 550 points and was seen trading near 77,000, while Nifty50 was seen trading at the level of 23,800 with a decline of more than 140 points i.e. more than 0.50 percent. Weakness was also seen in Asian markets, where major indices like Nikkei, Kospi and Hang Seng fell by up to 1 percent.