New Delhi, June 10: Global crude oil prices saw a significant increase during Wednesday’s trading session. The rise comes after the United States launched attacks on Iranian military bases near the Strait of Hormuz, raising concerns about potential disruptions in energy supply. As a result, oil prices surged by up to 1 percent.
The international benchmark Brent crude climbed nearly 1 percent to reach $93.26 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude also saw an increase of 0.97 percent, trading close to $90 per barrel.
This price hike occurred after the US military stated that it had conducted “self-defense” strikes on Iran’s air defense, ground control, and surveillance radar sites near the Strait of Hormuz.
According to US Central Command, this action was a response to the alleged downing of an Apache helicopter belonging to the US military in the region. However, Iran denied any involvement in the incident, asserting that the helicopter crash was an accident.
This development comes at a time when markets had hoped for a gradual de-escalation of tensions in West Asia. However, the escalating confrontation between the US and Iran has heightened investor concerns.
Investor and trader confidence has also weakened, leading to selling pressure in global stock markets.
Reports indicate that US crude oil inventories have decreased for the eighth consecutive week, providing additional support for oil prices.
In the meantime, Iran has warned that it could resume hostilities if Israel continues its attacks on Hezbollah in Lebanon.
The rising tensions have also impacted Asian stock markets. Japan’s Nikkei and Hong Kong’s Hang Seng Index fell by over 1 percent, while South Korea’s KOSPI Index dropped nearly 4 percent.
On the other hand, US stock markets closed lower on Tuesday, with the Nasdaq Composite down by 0.97 percent and the S&P 500 Index falling by 0.26 percent.
Conversely, domestic stock markets showed strength during the morning session, with major indices recording gains of about 0.5 percent in early trading.
Experts believe that the increasing geopolitical tensions in West Asia and uncertainty regarding energy supply could shape the direction of the oil market and global financial markets in the coming days.
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