Global oil prices rallied sharply on Tuesday, with Brent crude climbing above $84 per barrel amid escalating tensions in the Middle East. Investors reacted swiftly to fears that prolonged conflict in the region could disrupt global supply chains and tighten already fragile energy markets. The surge reflects growing uncertainty over how long geopolitical hostilities may last and their potential ripple effects on global economies.
As of early trading, the international benchmark, Brent Crude, jumped 8.36 percent to $84.24 per barrel. Meanwhile, the U.S. benchmark, West Texas Intermediate (WTI), climbed 8 percent to $76.93 per barrel, extending Monday’s nearly 10 percent rally. The gains followed comments from U.S. President Donald Trump suggesting that the ongoing military campaign in Iran, dubbed “Epic Fury,” could last longer than initially projected.
Speaking late Monday, Trump indicated that while early estimates placed the operation at four to five weeks, the United States had the capacity to continue beyond that timeline if necessary. His remarks fueled market concerns that the confrontation could evolve into a drawn-out crisis, increasing the risk of energy supply interruptions at a time when global spare production capacity remains limited.
Investor anxiety intensified after Iran announced the closure of the strategically vital Strait of Hormuz, a narrow passage between Iran and Oman through which roughly 20 percent of the world’s oil and gas trade flows. The move followed joint U.S.-Israeli strikes and was accompanied by threats from senior advisers within the Islamic Revolutionary Guard Corps(IRGC), warning that vessels attempting to cross could be targeted. However, United States Central Command disputed the claim, stating that the strait remains open.
Despite the conflicting statements, shipping activity has slowed significantly as tanker operators weigh the risks. Analysts warn that even the perception of danger is enough to disrupt flows and tighten supply. Market watchers say oil prices could climb to $100 or even $120 per barrel if traffic through the Strait of Hormuz is not restored within weeks. With few alternative routes and limited spare output globally, a sustained disruption could drive up fuel costs, intensify inflationary pressures, and strain economies already navigating uncertain terrain.
source: daily trust