Strait of Hormuz risks and Iran fears fuel volatility despite OPEC supply boost
WASHINGTON: Comments by Donald Trump and escalating tensions in the Middle East pushed global oil prices higher, amplifying concerns over supply disruptions and market stability.
Fears surrounding potential conflict involving Iran and the possible closure of the Strait of Hormuz, a critical artery for global oil shipments have heightened uncertainty among investors and traders.
At the start of the trading week, U.S. crude rose nearly 3% to $115 per barrel before easing to $111.23. Brent crude also climbed 2.28% to $111.43 per barrel. Meanwhile, West Texas Intermediate crude gained 2.7%, reaching around $114.50 per barrel.
Markets in Asia, including Singapore and the United Arab Emirates, reflected similar trends, with prices hovering near the $115 mark. Analysts warn that continued geopolitical instability could sustain upward pressure on energy prices.
In response, the OPEC said it will increase production for May by more than 200,000 barrels per day in an effort to stabilize the market.
Sources indicate that key producers, including Saudi Arabia and Russia, have backed the move, though experts caution that supply measures may have limited impact if tensions escalate further.
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