Tensions in Strait of Hormuz Surge Oil Prices Amid Middle East Conflict

Oil prices have risen for a third consecutive day as heightened tensions in the Middle East, involving the U.S., Israel, and Iran, threaten supply disruptions through the critical Strait of Hormuz. This conflict has led to increased risks, with fears of attacks on energy infrastructures and vessels.

Oil prices have surged for the third straight day amid escalating conflict in the Middle East, particularly between the U.S., Israel, and Iran. Tensions have significantly increased the risk of supply disruptions through the strategic Strait of Hormuz, a critical channel for global oil transport.

Brent crude futures reached $78.83 a barrel, while U.S. West Texas Intermediate crude settled at $71.97. As fears loom over further escalation and potential energy infrastructure attacks, analysts warn of continued price hikes, possibly reaching $120-$150 if the conflict prolongs.

The Strait of Hormuz carries approximately one-fifth of global oil demand, with many vessels now avoiding the area due to cancelled insurance coverage. In the wake of severe regional instability, refined product futures also saw price growth as major facilities face increased threats.

(With inputs from agencies.)