Oil prices jump 4% after Iran tensions rise
- Brent crude futures rose 4% above $79 per barrel after renewed U.S.-Iran military tensions.
- WTI crude increased 4.13% to $74.36 per barrel during Asian trading.
- Markets reacted to concerns that disruptions around the Strait of Hormuz could affect oil supplies.
Brent crude futures rose 4% to above $79 per barrel in Asian trading after renewed U.S.-Iran tensions and claims of disruption around the Strait of Hormuz increased concerns about global oil supply.
The move reversed expectations that recent Middle East tensions could ease quickly, with investors reassessing the risk of longer disruptions following new military actions over the weekend.
“Hopes of a relatively quick resolution to the recent skirmishes may be in doubt after tension escalated over the weekend,” said analysts at ANZ in a note carried by Reuters.
West Texas Intermediate (WTI) crude futures, the U.S. benchmark, increased 4.13% to $74.36 per barrel, while market participants monitored reports that vessel traffic through the Strait of Hormuz had slowed.
Oil markets reacted after the U.S. conducted new strikes on Iran and Iran launched missile attacks against U.S. allies in the region, including Bahrain, Kuwait, Qatar, Jordan and Oman; following the developments, Brent crude was trading above $79 per barrel.
The Strait of Hormuz is a major oil transit route, and traders have focused on whether continued tensions could affect energy shipments from the Middle East.
Equity and bond markets declined in parts of Asia and Europe as investors priced in the possibility of extended disruptions to oil flows and broader economic effects from the regional conflict.
