Oil prices climbed sharply on Sunday as escalating military tensions between the USA and Iran continued disrupting shipping through the Strait of Hormuz, raising fears of further supply shortages and higher energy costs worldwide.
According to Reuters, Brent crude rose by 4% to $79.11 per barrel, while U.S. West Texas Intermediate (WTI) crude increased to $74.36 per barrel, also marking a gain of around 4%.
Analysts warned that prices could rise further if hostilities persist and shipping disruptions continue in the Gulf.
The latest increase follows reports that commercial oil tankers have slowed or suspended transit through the Strait of Hormuz after Iran intensified pressure on vessels using the strategic waterway.
Nearly 20% of the world’s seaborne oil and fuel supplies pass through the narrow shipping route, making any disruption a significant threat to global energy markets.
The United States has also felt the impact of rising crude prices, as it imports oil from Gulf producers for refining before supplying domestic and international markets.
The continued disruption has heightened concerns over inflation and the potential economic impact of prolonged instability in the Middle East.
The surge in oil prices comes as diplomatic efforts to end the conflict have stalled. Both Washington and Tehran have repeatedly accused each other of violating ceasefire understandings, undermining attempts to restore stability.
Market analysts say continued military escalation could place additional pressure on global oil supplies and push fuel prices even higher in the coming weeks.