Intro
Investors reacted nervously to fresh diplomatic friction and fears that the fragile ceasefire in the region may not hold
New Delhi
Global crude oil prices recorded sharp gains as escalating tensions between the United States and Iran raised concerns over possible disruptions in the Strait of Hormuz, one of the world’s most vital energy transit routes.
Investors reacted nervously to fresh diplomatic friction and fears that the fragile ceasefire in the region may not hold, pushing benchmark oil contracts to their highest weekly gains in months.
Brent crude futures settled at 109.26 dollars per barrel, rising by 3.54 dollars or 3.35 per cent during the trading session. Meanwhile, United States West Texas Intermediate crude closed at 105.42 dollars per barrel, gaining 4.25 dollars or 4.2 per cent.
On a weekly basis, Brent crude advanced 7.84 per cent, while WTI surged 10.48 per cent as traders closely monitored developments in the Middle East and growing uncertainty surrounding global energy supplies.
Market sentiment weakened after Iranian Foreign Minister Abbas Araqchi stated that Tehran had no trust in the United States and would engage in negotiations only if Washington demonstrated genuine commitment. He also indicated that Iran remained ready for both renewed military conflict and diplomatic talks, signalling continued uncertainty over the future of regional stability.
The latest remarks came as US President Donald Trump expressed frustration over Iran’s stance and reiterated that Tehran must not be allowed to develop nuclear weapons. Trump also called for the reopening of the Strait of Hormuz, a critical shipping passage through which nearly one-fifth of the world’s oil and liquefied natural gas supplies are transported.
The Strait of Hormuz remains strategically important for major Gulf oil producers such as Saudi Arabia, Iraq, and Qatar. Any disruption in shipping activity through the narrow waterway is considered a serious threat to global energy markets and international trade.
Investors had initially hoped that the ceasefire involving Iran and regional rivals would lead to smoother maritime operations and improved stability in the Gulf region. However, renewed tensions and strong statements from both Washington and Tehran have significantly reduced expectations of a quick resolution.
During his visit to China, Trump also said he had agreed with Chinese President Xi Jinping that Iran should not possess nuclear weapons. The statement added another geopolitical dimension to the ongoing crisis, further intensifying concerns among global investors and energy traders.