Global Oil Prices Surge Amid Escalating US-Iran Tensions
Kathmandu. Oil prices saw a sharp increase on Monday as concerns over crude oil supply intensified due to the ongoing conflict between the US-Israel and Iran in West Asia. The disruption in major oil-producing regions and the threat of potential military action pushed both Brent Crude and West Texas Intermediate prices higher.
In Monday morning trading, Brent Crude futures rose by $1.71, or 1.6 percent, to $110.74 per barrel. Similarly, US crude oil prices increased by $0.71, trading at $112.25 per barrel.
Market volatility spiked after US President Donald Trump threatened to strike Iranian power plants and bridges on Easter Sunday. Trump warned via social media that if Iran does not open the strategically vital Strait of Hormuz, it will face severe military action starting Tuesday.
The Strait of Hormuz, a critical transit route for oil from Iraq, Saudi Arabia, Qatar, Kuwait, and the UAE, has remained largely closed since the conflict began on February 28. With shipping disrupted by Iranian attacks, global refineries are seeking alternative supplies from the US and the UK's North Sea region. While Iran has allowed only a few ships from allied nations to pass, the overall supply chain remains in disarray.
Meanwhile, the OPEC+ nations agreed in a meeting on Sunday to increase daily oil production by 206,000 barrels for May. However, as most major producers are unable to increase output due to the war, this decision appears likely to remain only on paper.
On the other hand, the Russian oil terminal at Ust-Luga, which was disrupted by a Ukrainian drone attack, only resumed operations on Saturday. With ceasefire efforts failing and Iran refusing to negotiate with the US, signs indicate that this surge in oil prices may persist for some time.
This specific news has been automatically translated by AI. As a result, there may be some inaccuracies or language errors.
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