Oil prices surged following renewed hostilities between the U.S. and Iran over the Strait of Hormuz, with Brent crude rising over 4% to $78.82 per barrel, the highest since June 22. The U.S. launched strikes against Iranian targets after accusing Iran of attacking a container ship. In response, Iran conducted missile and drone attacks on surrounding nations.
The Strait is vital for global trade, with U.S. Central Command asserting the need for safe navigation despite Iranian threats. Maritime traffic has significantly declined, with only a handful of ships passing compared to the usual flow of around 130 daily.
Market analysts suggest that oil prices might remain in the low $70s amid ongoing geopolitical uncertainty, although recent tensions have increased price volatility. Despite the market’s previous stabilization, analysts warn that future price surges are unlikely due to slow demand recovery and increased supply from OPEC+.
Asian stock markets reacted negatively, with major declines noted in Japan and South Korea, reflecting the broader impact of the conflict.
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