NEW DELHI — Global crude oil prices climbed sharply on Tuesday, rising more than 3 percent as escalating tensions with Iran and a deadline set by U.S. President Donald Trump to reopen the Strait of Hormuz fueled market concerns.
U.S. West Texas Intermediate crude jumped more than 3 percent, or $4.15, to $116.56, while Brent crude futures rose as much as 1.69 percent, or $1.86, to an intraday high of $111.63.
Oil prices have surged dramatically since the conflict began in late February. Brent crude has gained more than 60 percent, rising from $72.48 on Feb. 27 to as high as $119.50 on March 9.
The rally follows renewed tensions after Trump issued strong warnings to Iran over reopening the Strait of Hormuz, a key global oil transit route.
In recent social media posts, Trump warned it would “rain hell” on Tehran if it failed to meet his deadline, adding that Iran could be “taken out in one night.”
He further stated that if no agreement is reached, “every bridge in Iran will be decimated” and “every power plant in Iran will be out of business, burning, exploding and never to be used again.”
Iran has reportedly rejected a ceasefire proposal and continued its standoff, adding to fears of prolonged disruption in the region.
The Strait of Hormuz, which handles roughly one-fifth of global oil flows, has remained affected since the conflict began on February 28, driving crude prices significantly higher this year, with averages hovering around the $100 mark.
In equity markets, global performance was mixed. Indian benchmark indices traded lower on Tuesday, with the Sensex and Nifty declining by up to 1 percent.
In the United States, Wall Street closed modestly higher, while Asian markets showed mixed trends as investors weighed geopolitical risks and energy price volatility. (Source: IANS)
