Oil Near $100 as Hormuz Crisis Fuels Supply Fears
News Desk
Hong Kong: Oil prices rebounded on Tuesday, climbing back toward the $100 mark as escalating tensions around the Strait of Hormuz heightened concerns over global energy supplies, while investors kept a close watch on inflation and upcoming central bank decisions.
The renewed gains followed a volatile session a day earlier, when prices had dropped after Fatih Birol of the International Energy Agency signaled that additional emergency stockpiles could be released if necessary. Despite that reassurance, ongoing geopolitical risks continued to underpin crude markets.
Tensions remained elevated after Donald Trump urged allies to assist in securing the vital shipping route, which Iran has effectively disrupted.
However, key partners including Friedrich Merz and several European nations showed reluctance to get involved, with Berlin stating the conflict did not fall under NATO’s remit. Countries such as Britain, Spain, Poland, Greece, Sweden, Australia, and Japan also distanced themselves from the proposal.
Read More: https://thepenpk.com/strait-of-hormuz-disruption-could-spike-food-prices-un/
The standoff has intensified fears of supply disruptions, especially as fresh attacks targeted oil infrastructure across the region. Drone strikes hit major fields in the United Arab Emirates and Iraq, while Israel reported a wave of strikes in Tehran and against Hezbollah positions in Beirut.
A separate drone and rocket attack also targeted the US embassy in Baghdad.
Amid the uncertainty, investors are bracing for a potential resurgence in inflation driven by higher energy costs, with several major central banks set to announce policy decisions this week.
Analysts warn that prolonged oil price strength could complicate efforts to stabilize global prices, raising the possibility of further interest rate hikes.
Despite the geopolitical turmoil, global equity markets extended gains, supported by strong momentum in the technology sector. Optimism was fueled by Nvidia after it projected revenues of up to $1 trillion by 2027, lifting investor sentiment across Asian markets.
Major indices in Seoul, Tokyo, Hong Kong, Shanghai, and Sydney all advanced, tracking overnight gains on Wall Street. However, analysts cautioned that the rally may lack strong conviction.
“Markets are showing resilience, but it’s too early to call this a turning point,” said one analyst, noting that persistent geopolitical risks continue to cast a shadow over global financial stability.
With the crisis showing no clear signs of easing, oil markets remain highly sensitive to developments in the Middle East, keeping investors on edge.
