Crude Oil Prices Surges Over 1% After US-Iran Ceasefire Collapse

The global crude oil prices have surged over 1% on Thursday after the United States carried out fresh strikes on Iran, plummeting expectations of an end to the West Asia conflict. 

Meanwhile, this delays hopes pinned on the re-opening of Strait of Hormuz, a key route for several countries, including India for oil and gas supplies pre-war. 

As of 9:05 AM, the Brent crude was trading 1.03% higher at $78.82 per barrel, meanwhile, (WTI) crude futures rose 1.20% to $74.40 per barrel. 

Both Brent and WTI had already risen by over $1 in after-hours trading on Wednesday after the US military launched another round of strikes on Iran.

Earlier in the session, the two benchmarks had settled at their highest levels in more than two weeks after US President Donald Trump warned that fresh military action against Iran could begin as early as Wednesday night.

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The pressure on oil prices continues to weigh in on global markets as well given the US conducted its latest round of military strike in response to Tuesday’s attack on three tankers passing through the Strait of Hormuz. The strikes reportedly shook several cities along Iran’s southern coastline and caused power outages in some areas.

Meanwhile, Iranian Parliament Speaker Mohammad Bagher Ghalibaf has issued a fresh warning to the United States following its recent strikes, saying the Strait of Hormuz would reopen only under “Iranian arrangements" and not because of “American threats."

This comes after englufing tensions between Tehran and Washington, with Ghalibaf rejecting US pressure over the strategic waterway and asserting that decisions on its reopening would be made solely by Iran.