Crude oil prices surge up to 1 pc as US-Iran tensions escalate

New Delhi: Global crude oil prices traded higher on Wednesday, increasing by up to 1 per cent after the United States launched strikes against Iranian military targets near the Strait of Hormuz, raising concerns over potential disruptions to energy supplies from the strategically important region.

International benchmark Brent crude was up about 1 per cent at $93.26 per barrel. Similarly, US West Texas Intermediate (WTI) crude gained 0.97 per cent to trade around $90 per barrel.

The latest gains came after the US military said it had carried out what it described as self-defence strikes on Iranian air defence, ground control and surveillance radar sites near the Strait of Hormuz.

According to the US Central Command, the operation was launched in response to the reported downing of a US Army Apache helicopter in the region. However, Iran denied responsibility for the incident and said the helicopter crash was accidental.

The development marks a fresh escalation in tensions between Washington and Tehran at a time when markets had been anticipating a gradual easing of hostilities in West Asia.

Investor and trader sentiment also remained weak, leading to selling pressure in global equities.

Reports claim that US crude oil inventories fell last week for an eighth ⁠consecutive week

If Israel persisted in attacking the Hezbollah militia in Lebanon, Tehran threatened to reopen hostilities.

In addition, Asian markets traded largely in the red. Japan’s Nikkei and Hong Kong’s Hang Seng both fell more than 1 per cent, while South Korea’s KOSPI plunged nearly 4 per cent.

Wall Street ended lower on Tuesday, with the Nasdaq Composite declining 0.97 per cent and the S&P 500 slipping 0.26 per cent.

In contrast, domestic equity markets traded higher in the morning session, with benchmark indices gaining up to 0.5 per cent in early trade.

IANS