Oil prices jumped again on Monday as fresh tensions between the US and Iran shook global markets.
According to media reports, crude oil rose more than 3% in early trading. Brent Crude: Up $2.67, now trading at $78.68 per barrel.
Analysts say the biggest concern right now is the Strait of Hormuz. Markets fear the ongoing standoff could disrupt oil shipments through the vital waterway.
The US Energy Information Administration says nearly 20% of the world’s oil supply passed through the Strait before the conflict began. That’s why traders are watching it so closely.
Just days ago, prices had fallen to a 4-month low after US-Iran talks. But the new escalation has reversed that trend.
US Central Command CENTCOM confirmed that American forces have started new strikes against Iran.
According to CENTCOM, the goal is to weaken Iran’s ability to target civilian and commercial ships passing through the Strait of Hormuz.
Along with oil, global gold prices also saw a sharp drop today. Experts warn that if tensions escalate further, oil could break the $80 per barrel mark in the coming days.
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