Global economies are bracing for a potential shock in June as oil prices have jumped more than 8 per cent in the past week amid continued tensions in the Strait of Hormuz and less-than-fruitful talks between China and the United States.
Brent crude futures for June rose to $109.26 a barrel, gaining $3.54 or 3.35 per cent on Friday, while US West Texas Intermediate (WTI) crude ended at $105.42 a barrel, up $4.25 or 4.2 per cent.
According to the latest global data, Brent crude climbed 7.84 per cent while WTI jumped 10.48 per cent this week due to ongoing uncertainty and a fragile ceasefire that could break at any moment, as US President Donald Trump’s patience is almost running out.
Meanwhile, both domestic and international investor sentiment weakened after Iranian Foreign Minister Abbas Araghchi said Tehran has “no trust” in the United States and that negotiations with Washington would only continue if the US demonstrates seriousness.
He also stated that Iran remains prepared for both renewed conflict and diplomatic engagement. His remarks came as US President Trump signalled his frustration with Iran and warned that it cannot have a nuclear weapon.
In Beijing, Trump said that Iran must reopen the Strait of Hormuz, which handles nearly 20 per cent of the global oil supply.
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