WASHINGTON: Global oil markets witnessed a sharp surge following a strong warning issued by US President Donald Trump to Iran, escalating fears of a major energy crisis.
According to reports, US crude oil prices jumped by 2.35 percent to reach $114.16 per barrel, while Brent crude rose by 1.72 percent to $110.91 per barrel.
Trump, in a statement on social media, gave Iran a 48-hour deadline to reopen the Strait of Hormuz, warning of severe consequences if the demand is not met. He also threatened potential strikes on Iran’s power plants and bridges, further intensifying geopolitical tensions.
Meanwhile, reports indicate that attacks on oil tankers in the Strait of Hormuz have effectively disrupted traffic through the vital waterway. The strait, which connects the Persian Gulf to global markets, previously handled nearly 20 percent of the world’s oil supply.
Experts warn that the situation could trigger one of the largest oil supply crises in history, pushing up prices of crude oil, jet fuel, diesel, and petrol worldwide.
Financial institutions have also cautioned that up to one billion barrels of oil supply could be affected by the end of the month if the conflict continues. Earlier statements from US leadership suggested that the confrontation could persist for two to three weeks.
