Oil prices climbed sharply in volatile trade, edging closer to the USD 100-per-barrel mark, as intensifying hostilities between the United States and Iran stoked fears of major supply disruptions. Brent crude rose to around USD 97.15 per barrel, up 1.2 per cent, while WTI crude advanced to USD 95, gaining 1.3 per cent, as traders priced in a heightened geopolitical risk premium.
The latest rally follows a fresh round of military escalation in the region. The United States said it carried out “self-defence strikes” on Iran’s Qeshm Island, targeting a ground control station, while also confirming it had shot down multiple Iranian drones. According to official statements, U.S. forces intercepted three one-way attack drones, adding that no American personnel were harmed in the confrontation.
Iran, in turn, retaliated with ballistic missile and drone strikes targeting multiple U.S. positions, according to reports from state broadcaster IRIB. The exchange marks one of the most serious direct confrontations between the two sides amid the ongoing ceasefire, raising concerns over a broader and prolonged conflict in West Asia.
The escalation has unsettled energy markets, particularly given the strategic importance of the region to global oil flows. Continued hostilities could disrupt shipping routes and threaten critical infrastructure, especially around the Strait of Hormuz, through which a significant portion of global crude supplies passes.
Despite the geopolitical tensions, global equity markets showed resilience. Major U.S. indices ended higher, with the Dow Jones gaining 229 points, while the S&P 500 rose 0.13 per cent and the Nasdaq edged up marginally. European markets also traded firm, with the CAC 40, DAX, and FTSE 100 posting gains of 0.3 per cent to 0.7 per cent, suggesting investors are cautiously balancing risk sentiment.
Oil prices have remained highly volatile, with concerns mounting over potential supply disruptions at the Strait of Hormuz, a critical maritime chokepoint that handles nearly 20 per cent of global oil flows, heightening inflation risks for economies worldwide.
Earlier on April 30, Brent climbed near a multi-year high of USD 126 a barrel, gaining nearly 7 percent intraday, extending the momentum built on the back of a strong surge earlier. Before, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating West Asia tensions.
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