Crude oil prices have surged after the United Nations maritime agency abandoned the evacuation of ships stranded in the Strait of Hormuz following an attack on a cargo vessel on Thursday night.
According to the latest market data, crude prices rose nearly 4 per cent on Thursday after the International Maritime Organization stopped its evacuation efforts in the critical waterway.
Brent futures for August delivery stood at $74.89 per barrel as of 02:00 GMT, after earlier dropping below $72.48 – their closing price the day before the United States and Israel launched their war on Iran.
After falling to pre-war levels on Thursday morning, prices scaled back up following the reported attack on the commercial vessel, for which no group has claimed responsibility. Brent currently stands about 3 per cent above its pre-war level.
Meanwhile, Asian markets opened lower on Friday, with major indices like Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Taiwan’s Taiex witnessing losses.
Tokyo’s Nikkei 225 and Seoul’s Kospi both fell more than 3 per cent in morning trading, while the Taiex dropped about 1 per cent and Hong Kong’s Hang Seng Index was down around 1 per cent.
On Wednesday, nearly 70 vessels entered and exited the waterway — more than double the previous day.
Furthermore, Iran’s Persian Gulf Strait Authority, which claims the right to regulate shipping in the strait, said after the attack that any vessel attempting to use routes outside its designated “framework” would not be guaranteed safe passage.
Also read: Crude falls to pre-war levels, but petrol, diesel rates unchanged
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