Oil prices surged on Friday as tensions escalated between the U.S. and Iran, following exchanges of fire in the Strait of Hormuz. Brent crude futures for July delivery climbed 2.26% to $102.32 per barrel, while U.S. West Texas Intermediate futures for June rose 2.06% to $96.76. The renewed conflict raises concerns about the stability of shipping routes critical to global oil supply, particularly as both nations accuse each other of violating a fragile ceasefire.
This geopolitical tension is likely to keep oil markets on edge, with analysts noting that the risk of a breakdown in U.S.-Iran peace negotiations could lead to sustained volatility. ANZ highlighted that recent fluctuations in oil prices reflect market uncertainty about the future of the Strait of Hormuz, a vital artery for oil transport.
Market participants should brace for continued price swings in the oil sector, as the potential for further military action or diplomatic breakdowns could keep supply concerns at the forefront in the coming months.
Source: cnbc.com