Crude oil prices have surged on Friday amid continued uncertainty in the Strait of Hormuz and the ongoing diplomatic deadlock between the United States and Iran over ending the conflict.
Brent crude oil rose by $2.38, or 2.3 per cent, reaching $104.96 per barrel as of 00:34 GMT on Friday, while US West Texas Intermediate (WTI) crude rose by $1.73, or 1.8 per cent, to settle at $98.08 per barrel.
The price rise came a day after crude had dropped roughly 2 per cent on Thursday, marking its lowest level in the last two weeks. Prices rose as investors grew sceptical about a potential breakthrough in US-Iran talks, with the two nations remaining deadlocked over Iran’s enriched uranium stockpile.
Meanwhile, US strategic crude oil reserves have also dropped due to stabilisation measures the country has been implementing over the past two weeks.
The continuous supply disruption in the Strait of Hormuz continues to pose a greater risk to the global economy, which has now entered a critical phase. Besides, Asian countries—both developed and developing economies—are bearing the brunt of fuel shortages.
India, which remains heavily dependent on imported crude oil, has announced austerity measures to keep the economy functioning.
The choking of the Strait of Hormuz has caused greater distress in global economies, as it handles nearly 20 per cent of the world’s oil supplies.
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