Crude oil spikes after Trump move, fuel prices likely to rise
New Delhi/London (The Uttam Hindu) – The growing geopolitical tensions between the United States and Iran are now having a direct impact on the global oil market. On Thursday, the price of Brent crude oil in the international market surpassed $70 per barrel, a level recorded for the first time since September. This sharp rise in prices came after US President Donald Trump warned Iran of military action.
Both Brent and WTI saw a rise.
In the London market, Brent North Sea crude was seen trading at $70.06 per barrel with a gain of 2.4 percent. At the same time, the American benchmark West Texas Intermediate (WTI) also jumped 2.6 percent to reach $64.82 per barrel. Market experts believe that if the tension in West Asia deepens further, then further increase in crude oil prices is possible.
Trump's tough message on Iran
President Trump took a tough stance on Iran on his social media platform, Truth Social, saying that Tehran should immediately come forward for talks on its nuclear program. He said that any agreement should not include any scope for nuclear weapons and should be in the interest of all parties. Trump warned that if Iran continues to stay away from talks, the situation could become more serious.
Meanwhile, Iran 's
Foreign Minister Abbas Araghchi warned the US that Iran would respond swiftly and strongly to any military action. His statement has further fueled fears of conflict in the region, impacting market sentiment.
According to market expert Darren Nathan, if the conflict between the US and Iran escalates, Iran's oil production of approximately 3 million barrels per day could be affected. This would also increase the risk of disruption
to oil and gas tankers passing through the Strait of Hormuz, which is considered vital to global energy supplies.
Oil prices could become even more expensive in the future.
Experts say that currently, there is an atmosphere of uncertainty and fear in the market. Amid rising tensions, investors are looking to crude oil as a safe investment option. This is why Brent crude has reached a four-month high. If the situation does not return to normal soon, pressure on petrol and diesel prices may also increase in the coming days.