OIL PRICES CLIMB TO $74 AFTER TANKER ATTACKS IN STRAIT OF HORMUZ

Global oil prices rose sharply on Tuesday following reported attacks on commercial tankers near the Strait of Hormuz, renewing concerns about potential disruptions to one of the world’s most critical energy chokepoints.

Brent crude futures climbed above $74 per barrel, while U.S. West Texas Intermediate crude also gained over 2.5 per cent to around $70 per barrel. The surge reflects heightened geopolitical risks in the Gulf region, where approximately 20 per cent of global oil trade passes through the narrow strait.

The incidents prompted the U.S. to revoke a sanctions waiver on Iranian oil sales, further tightening market sentiment. Shipping groups noted that while some vessels continue transits, insurance costs and risk premiums for the route have increased significantly.

Analysts warned that prolonged instability could exacerbate supply concerns amid already tight global inventories. However, some market participants expect the impact to be contained if attacks remain sporadic and major producers maintain output levels.

The developments come against a backdrop of broader Middle East tensions, with traders closely monitoring any escalation that could affect tanker traffic or infrastructure in the region.