Oil prices surged to $84 per barrel, marking an 8% increase on Tuesday as markets grappled with the escalating conflict in the Middle East and the looming threat of supply disruptions. The international benchmark, Brent Crude, soared to $84.24, while the U.S. benchmark, WTI Crude, breached the $75 per barrel mark, trading at $76.93. This surge follows a 10% jump on Monday, triggered by U.S. President Donald Trump's acknowledgment that the war in Iran, codenamed 'Epic Fury', might extend beyond the initial four-week projection. Trump's statement, 'Whatever it takes... we have the capability to go far longer than projected,' sent shockwaves through the market. Iran, in retaliation, declared the closure of the Strait of Hormuz, a critical trade route for a fifth of global oil and gas, vowing to burn any ship attempting to transit the narrow strait between Iran and Oman. Ebrahim Jabbari, a senior advisor to the Islamic Revolutionary Guard Corps (IRGC), echoed these sentiments, warning of attacks and fires on any ships crossing the strait. However, the U.S. Central Command refutes the closure, casting doubt on Iran's claims. Despite the official stance, tanker traffic is effectively halted, as shippers and traders shy away from the Strait of Hormuz due to Iran's threats. Analysts predict oil prices could soar to $100 or even $120 per barrel if the Strait's traffic remains disrupted for three weeks. This volatile situation underscores the delicate balance between geopolitical tensions and global energy markets.
