Oil prices surged amid heightened US-Iran tensions, as the fate of the Strait of Hormuz drew close to attention.

The oil market saw renewed buying interest following US retaliation against Iran and increased risks to shipping through the Strait of Hormuz. Analysts warn that if the situation escalates, oil prices could surge further, while the market closely monitors global supply trends.

On July 8, 2569, CNBC news agency reported that Global oil prices rose again following a resurgence of tensions between the United States and Iran. The US launched an offensive against Iranian military targets and revoked sanctions waivers on Iranian oil exports in retaliation for the attacks on commercial ships in the Strait of Hormuz, reigniting investor concerns about global oil supply risks.

In recent trading, Brent crude oil prices rose more than 5%, closing at around $74 per barrel, while West Texas Intermediate (WTI) crude closed above $70 per barrel and continued to climb in after-market trading.

Analysts say that while the oil market still has sufficient supply from major producing countries, geopolitical risks have become the main factor driving prices, particularly uncertainty about the safety of shipping through the Strait of Hormuz, a shipping route for about 20% of the world's oil.

Investors are also closely monitoring whether the situation will escalate to a blockade of shipping in the Strait of Hormuz, as a disruption to oil exports from the Middle East could lead to a sharp rise in oil prices and impact inflation and the global economy.

Furthermore, the market was supported by data showing a decrease in U.S. crude oil inventories, reflecting tighter supply and further increasing the sensitivity of oil prices to geopolitical risks in the short term.

refer : cnbc.com

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