Doha, May 11: Global crude oil prices jumped sharply on Monday after US President Donald Trump described Iran’s response as “unacceptable,” reigniting fears over supply disruptions in the Middle East. Because apparently global markets now move like emotionally unstable group chats reacting to presidential comments in real time.
The surge came amid concerns that the Strait of Hormuz remains largely blocked, raising fears of major disruptions in global oil supplies.
Brent crude climbed to USD 105.44 per barrel on Monday morning, marking a 4.11 percent increase from the previous day. Meanwhile, US West Texas Intermediate (WTI) rose 4.59 percent to USD 99.80 per barrel.
Oil prices had fallen by around 6 percent last week on hopes that the 10-week-long conflict would ease and that oil shipments through the Strait of Hormuz would resume smoothly.
According to Priyanka Sachdeva, a senior market analyst at Phillip Nova, the oil market has now become a “headline machine,” with every statement coming from Washington and Tehran triggering sharp price swings.
Markets are now closely watching President Trump’s upcoming visit to Beijing on Wednesday. He is expected to discuss the Iran issue with Chinese President Xi Jinping. Investors remain hopeful that Beijing will use its influence over Iran to push for a ceasefire and help remove blockages in the Strait of Hormuz.
According to Amin Nasser, CEO of Saudi Aramco, the world has already lost nearly one billion barrels of oil over the past two months. He warned that even if supplies resume, markets may take time to stabilize. (Source: Agencies)
People’s News Monitoring Service
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