US President Trump's Response to Iran Causes Crude Oil Price Surge
Kathmandu. Crude oil prices saw a significant increase in the global market on Monday after US President Donald Trump called Iran's response 'unacceptable'.
The market heated up due to fears that the Strait of Hormuz might be frequently closed and supply could be disrupted, leading to a rise in oil prices.
On Monday morning, Brent crude reached $105.44 per barrel, a 4.11 percent increase from the previous day. Similarly, US West Texas Intermediate (WTI) also rose by 4.59 percent to $99.80 per barrel.
Last week, oil prices had fallen by 6 percent with hopes that the conflict ongoing for the past 10 weeks would end and oil transportation through the Strait of Hormuz would become easier. According to Priyanka Sachdeva, a senior market analyst at Phillip Nova, the oil market has currently become like a 'headline machine' of geopolitical events, where every comment from Washington and Tehran is causing significant price fluctuations.
The market's attention has now shifted to President Trump's visit to Beijing on Wednesday. Trump is expected to discuss the issue of Iran with Chinese President Xi Jinping. Investors are optimistic that Beijing will use its influence on Iran to push for a ceasefire and the removal of the Hormuz blockade.
According to Amin Nasser, CEO of Saudi Aramco, the world has lost approximately 1 billion barrels of oil in the last two months, and even after supply resumes, it will take time for the market to stabilize.
This specific news has been automatically translated by AI. As a result, there may be some inaccuracies or language errors.
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