New Delhi, April 9: Global crude oil prices saw a significant spike on Thursday. Concerns over the incomplete restoration of oil supplies from West Asia and doubts surrounding the two-week ceasefire between the U.S. and Iran have heightened market anxiety. This has raised fears that restrictions in the critical maritime route of the Hormuz Strait may continue.
International benchmark Brent crude futures rose by 3.31 percent to reach $97.89 per barrel. Meanwhile, WTI crude surged by 4.2 percent, trading at $98.38 per barrel.
On the previous day, Wednesday, crude oil prices had dropped by up to 20 percent, falling below $100 per barrel, as expectations grew that the ceasefire between the U.S. and Iran would ease tensions and reopen the Hormuz Strait.
The Hormuz Strait, through which oil from countries like Iraq, Saudi Arabia, Kuwait, and Qatar is exported globally, has become the focal point of this dispute.
Reports indicate that tensions have escalated due to Israeli attacks on Hezbollah in Lebanon. Additionally, missile and drone attacks have been reported in Kuwait, Bahrain, and the UAE.
It is reported that following these incidents, Iran has once again closed the Hormuz Strait. Shipping companies are hesitant to send vessels through this route until the ceasefire conditions are clearly defined.
Iran has issued maps to guide ships safely and has coordinated with its Revolutionary Guards to establish secure passages.
Meanwhile, the region’s oil infrastructure remains under threat. Reports suggest that Iran has targeted some installations in neighboring countries following the ceasefire, including a pipeline in Saudi Arabia.
In related news, Donald Trump has stated that U.S. ships, aircraft, and military forces will remain deployed around Iran.
Turning to the stock market, after a significant surge the previous day, domestic markets experienced a decline. As of the time of writing, the Sensex recorded a drop of 0.72 percent, losing over 550 points, trading near 77,000. The Nifty50 also fell by more than 140 points, or over 0.50 percent, trading around the 23,800 level.
Asian markets also showed weakness, with major indices like Nikkei, KOSPI, and Hang Seng declining by up to 1 percent.
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