Hormuz Closure Sparks Oil Price Surge

The closure of the Strait of Hormuz continues to have far-reaching effects on global markets. Oil prices are surging, with Brent crude futures rising more than $2 and reaching a 3.3% increase for the day at $84.64 per barrel. US West Texas Intermediate crude futures also saw an uptick, increasing by 3.1% to $80.63.

The increase in oil prices comes after a slight reprieve last week, when hopes of a deal between Iran and the United States sparked a dip in major benchmarks. However, with the strait still closed, analysts warn that US petrol prices could surge again if the situation doesn't change soon. Patrick De Haan, head of petroleum analysis at GasBuddy, noted that 'with the strait remaining closed, upward pressure on fuel prices could return quickly.'

Oil and gas stocks are also on the rise in US markets, with ExxonMobil stock up 2.9%, Chevron rising 3.1%, BP climbing 2.1%, Shell increasing by 1.2%, and ConocoPhillips rising 2.7% since the market opened.