Global crude oil prices surged sharply on Thursday amid fears that supply from West Asia may not fully resume, as doubts persist over whether the two-week ceasefire between the US and Iran will hold, with the crucial Strait of Hormuz reportedly remaining restricted. Crude oil prices surge trends are being closely tracked as escalating US Iran tensions impact global energy markets.
Brent crude futures jumped as much as 3.31 per cent to $97.89 per barrel at 9:06 am, reflecting a sharp rise in Brent crude price levels. The US West Texas Intermediate (WTI) crude traded at $98.38, up 4.2 per cent from the previous close, highlighting the spike in WTI crude price in global trade.
Crude oil prices surge as Hormuz tensions disrupt supply
Crude oil benchmarks had slipped up to 20 per cent below the $100-per-barrel mark on Wednesday — a level they had been averaging since February 28. In that session, US WTI recorded its biggest fall since April 2020 on expectations that the ceasefire involving the US and Iran would ease tensions and stabilise oil prices today.
However, renewed uncertainty has triggered a fresh crude oil price increase, with the Strait of Hormuz crisis once again taking centre stage in oil market news.
The waterway — a key route for oil supplies from Gulf producers including Iraq, Saudi Arabia, Kuwait and Qatar to global markets — remains at the centre of the conflict and ongoing global oil supply concerns.
Reports of Israeli strikes on Lebanon’s Hezbollah have further escalated tensions, while Kuwait, Bahrain and the UAE have also reported missile and drone strikes.
According to reports, Iran has once again closed the Strait of Hormuz following the latest developments.
Strait of Hormuz crisis deepens supply risks
Shippers said they require greater clarity on the terms of the ceasefire before resuming transit through the waterway, reflecting continued uncertainty in oil market news.
Iran has issued maps to guide ships around mines in the Strait and designated safe passage routes in coordination with the country’s Revolutionary Guards, Iranian media reported.
Regional oil infrastructure also remains under threat, with Iran reportedly striking sites in neighbouring countries after the ceasefire, including a pipeline in Saudi Arabia that has been used to bypass the blockaded Strait of Hormuz.
Moreover, US President Donald Trump has said that all American ships, aircraft, and military personnel will remain ‘in and around’ Iran, signalling persistent US Iran tensions oil concerns.
Global markets react to crude oil prices surge
On the equities front, domestic benchmark indices Sensex and Nifty traded about 0.7 per cent lower each, reflecting the broader impact of rising crude oil price increase on financial markets. Similarly, Asian stocks were also in the red, with key indices — Nikkei, KOSPI, and Hang Seng — declining up to 1 per cent.
The ongoing crude oil prices surge continues to influence investor sentiment, underlining the interconnected nature of energy markets and global equities.
Global crude oil price trends:
