Crude oil prices are once again witnessing a sharp rise amid escalation in tensions between Iran and the United States. The US launched its third straight night of strikes on Iran following President Donald Trump’s announcement of a multiday wave of attacks and a fresh blockade on Iranian trade in the Strait of Hormuz. Amid this, international crude oil prices rose above USD 80 per barrel, pushing the weekly oil gain to more than 10 per cent and hitting a 4-week high. According to experts, US oil is trading with a cautiously positive bias.
“Immediate resistance is placed at USD 81 โ USD 82, followed by the USD 84 level. On the downside, a break below USD 78 could drag prices toward USD 75, with the next support at USD 73โUSD 72. Overall, the near-term outlook remains cautiously positive, with geopolitical developments likely to drive the next directional move,” said Ponmudi R, CEO of Enrich Money.
US to levy fines on ships passing through Strait of Hormuz
US President Donald Trump has again banned Iranian ships from transiting the Strait of Hormuz. Additionally, payment requirements have been implemented for all other cargo using this route, effective 4 pm Eastern Time today. Meanwhile, Trump proposed a 20 per cent reimbursement for cargo and said that countries benefiting from US efforts to secure the Strait of Hormuz should also share the costs.
Additionally, Trump supported reimposing sanctions on buyers of Russian oil and natural gas, raising new concerns about global energy supplies and supporting crude oil prices.
Attacks between the US and Iran intensify
The ceasefire between the US and Iran has ended, and both countries have resumed attacks on each other’s bases. The impact of the war has again begun to be felt in the Strait of Hormuz, and Iran has attacked oil tankers in Hormuz. Meanwhile, Yemen’s Houthi rebels have accused Saudi Arabia of bombing Yemen’s Sanaa airport. Following this, the Houthi rebels have retaliated, firing missiles and drones at Saudi Arabia’s Abha airport.ย
Stock markets volatile
The escalation in tensions in West Asia has rattled stock markets around the world. Today, the Indian stock market started trading with a significant decline.
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