Blitz Bureau
NEW DELHI: Oil prices jumped Tuesday following renewed conflict in the Middle East, driven by growing hostilities between Israel and Iran and a dramatic call from former U.S. President Donald Trump urging an evacuation of Tehran.
Brent crude surged as much as 2.2% before settling just above $73 a barrel, while West Texas Intermediate (WTI) hovered near $72. The market remains jittery, weighing potential supply threats against diplomatic signals that tensions might ease.
On Monday, oil prices had dipped slightly amid signs Iran was seeking to de-escalate. But continued Israeli airstrikes—particularly targeting key nuclear sites—have kept energy markets on edge.
A focal point of concern is the Strait of Hormuz, a narrow but critical maritime chokepoint through which about 20% of the world’s oil flows daily. Maritime security firm Ambrey reported a potential incident near the strait on Tuesday, though specifics remain unclear. The UK Navy has also flagged disruptions in navigation signals across the region, adding to worries about shipping safety.
While Iran’s oil export infrastructure remains intact, many shipping companies are pausing bookings in the region due to rising risks. The result: increased market volatility and a surge in oil hedging and futures trading by producers.
Investment bank Morgan Stanley has raised its oil price forecasts, citing increased geopolitical risk. Meanwhile, the White House is reportedly weighing direct talks with Iran aimed at reviving the nuclear deal and potentially ending the conflict.
Israel claims it has gained partial control over Iranian airspace and has inflicted heavy damage on Iran’s missile and nuclear capabilities since launching its offensive on Friday. These developments have sparked growing fears of a broader regional war in an area responsible for nearly one-third of global oil production.
Despite some intraday pullback, oil prices remain well above pre-conflict levels. Markets are bracing for more volatility as the situation unfolds.