Oil Prices Surge as Strait of Hormuz Tensions Escalate
Crude oil prices have surged in the international market as tensions escalate around the Strait of Hormuz. The Brent crude oil price at ICE Exchange's Comex division in London rose by over 2 percent per barrel, nearing $90. This is a significant increase from before the US and Israel attacked Iran at the end of February, when Brent crude was trading at 24 percent higher than its pre-attack price.
The market has lost confidence in the possibility of successful negotiations regarding the reopening of the Strait of Hormuz, said Tim Waterer, chief market analyst at KCM Trade in Sydney. 'The longer the negotiations drag on without visible progress, and the more complex the demands heard, the more doubt grows about reaching a practical agreement quickly,' he added.
The Yemeni government reported that six people were killed in a missile attack by Iran-backed Houthi rebels on a commercial ship in the Bab al-Mandab Strait. This incident has further complicated the situation and contributed to rising oil prices.