Deepening tensions between the US and Iran have caused a surge in crude oil prices. Fears of global oil supply disruption have grown following US attacks.
Tensions are once again escalating between the United States and Iran, with a direct impact now visible on the global oil market. Crude oil prices have registered a sharp increase after the US carried out attacks on Iran for the second consecutive day. This latest military action has heightened fears of oil supply disruptions in markets worldwide.
On Thursday, Brent crude was trading at $78.68 per barrel, up by 0.95 percent.
It also touched a high of $79.15 during the day.
Meanwhile, the price of US West Texas Intermediate (WTI) crude oil also saw an increase of 1.01 percent, reaching $74.26 per barrel.
The main reason for this surge in oil prices is the growing tension in the Middle East.
US President Donald Trump made a significant statement at the NATO summit in Turkey.
He said that the ceasefire with Iran is 'over', which has reignited concerns about escalating tensions in the Middle East and caused a sharp spike in oil prices.
The effect of this global uncertainty was also seen in the US stock market.
On Wednesday, the Dow Jones Industrial Average closed with a significant drop of 576.76 points, or 1.09 percent, at 52,348.39.
The S&P 500 index also fell by 0.28 percent to close at 7,482.71.
However, the Nasdaq Composite saw a modest gain of 0.2 percent, closing at 25,870.65.
The US Central Command has confirmed that the US military conducted new attacks on Iran on Wednesday night.
This action came just hours after President Trump announced the end of an eight-week ceasefire.
Referring to Tuesday's attacks, Trump said that Washington had already hit Tehran 'very hard'.
He did not rule out the possibility of further military action in the future.
Trump described the Iranian leadership as 'unreliable', accusing them of repeatedly changing their stance during negotiations.
US Vice President JD Vance has made serious allegations against Iran.
He stated that Iran has resumed attacks on commercial ships, which is a clear violation of the recent agreement.
Vance warned that any attempt to disrupt maritime traffic in the Strait of Hormuz would be met with an even stronger military response from the US.
He stated clearly, 'If the attacks on ships continue, the US will also continue its military action.'
Vance said, 'The agreement is very clear, if they attack, we will respond forcefully.' However, he declined to comment on potential military options.
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