Noida, Apr 7 (APAC Media): Crude oil prices extended gains on Tuesday, as escalating geopolitical tensions in the Middle East pushed energy markets higher and traders braced for possible supply disruptions.
The United States’ looming ultimatum to Iran over the strategic Strait of Hormuz triggered fresh risk premiums, with key crude benchmarks trading well above $110 a barrel.
Brent crude futures, the global oil benchmark, climbed 0.5% to about $110.34 per barrel, while U.S. West Texas Intermediate (WTI) crude jumped 1.1% to approximately $113.67 per barrel in midday trade, reflecting heightened concerns over regional stability.
The surge came as former U.S. President Donald Trump issued a firm deadline for Tehran to reopen the Strait of Hormuz by 8 p.m. EDT on Tuesday or face intensified military action.
Trump warned that if Iran did not comply with the demand to restore movement through the vital waterway, it would be “taken out in one night,” heightening fears of broader conflict and disruption to global oil flows.
However, Iran dismissed a temporary ceasefire proposal brokered by the United States and conveyed via Pakistan, insisting instead on a permanent end to hostilities and again refusing to reopen the Strait of Hormuz, which has remained effectively closed since late February.
The Hormuz chokepoint is crucial for global energy supplies, typically channeling nearly 20% of the world’s crude exports, and its closure has strained international markets.
Therefore, regional tensions remained high, with explosions reported near Damascus after missile interceptions. Saudi Arabia also confirmed it had destroyed several ballistic missiles aimed at its eastern oil-producing region, raising further concerns over potential escalation in the Middle East.
The United Nations Security Council prepared to vote on a resolution aimed at safeguarding commercial shipping through the strait, though diplomatic efforts faced obstacles, including objections from China to authorising the use of force.
Middle Eastern oil supply restrictions are forcing refiners across Asia and Europe to seek alternative sources, boosting spot premiums and contributing to a broader surge in global energy prices.
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