Crude oil prices have stayed above $112 per barrel for the second consecutive day as the war in Iran intensifies with the entry of Yemen’s Houthis into the conflict. The surge in oil prices has put additional strain on world economies, forcing many countries to seek costlier energy alternatives.
President Donald Trump’s conflicting statements on ending hostilities while continuing aerial bombardment of Iran have further fuelled global energy shortages, driving oil and LNG prices sharply higher over the past two weeks.
Trump’s contradictory tone regarding the Iran war has also affected global markets, including gold and silver prices.
Despite announcements aimed at boosting market confidence and investor sentiment, Iran’s strong control over the Strait of Hormuz has failed to lift market mood.
Brent crude, the international benchmark, rose 4.2 per cent to $112.57 per barrel, while the US benchmark West Texas Intermediate (WTI) climbed 5.5 per cent to $99.64 on Sunday.
The high crude prices have weighed heavily on global markets, with Wall Street stocks falling and the S&P 500 recording its fifth straight week of negative performance.
European and Asian markets also fluctuated throughout the past week. Tokyo’s stock market closed lower, while Hong Kong and Shanghai edged higher.
Investor doubts about the prospects of a peace deal have grown as governments worldwide scramble to protect their economies from surging energy costs, which are adding to inflationary pressures.
The situation in the region continues to deteriorate rather than de-escalate, with President Trump and the Iranian government trading counterclaims on ending hostilities.
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