Daijiworld Media Network – New York

New York, May 28: Global oil prices surged on Thursday after fresh US military strikes in Iran heightened fears of disruption to commercial shipping through the strategically crucial Strait of Hormuz.

Brent crude futures, the international oil benchmark, climbed more than 3 per cent to reach USD 97.29 per barrel, while West Texas Intermediate (WTI) crude futures rose 3.42 per cent to USD 91.71 per barrel.

The spike in oil prices came after Iran’s Revolutionary Guards claimed they had targeted a US airbase at around 4.50 am local time, according to Iran’s semi-official Tasnim news agency. However, the report did not specify the location of the airbase.

The latest escalation followed fresh American strikes on an Iranian military site reportedly believed to pose a threat to US troops and commercial shipping routes near the Strait of Hormuz. US forces also reportedly intercepted and shot down multiple Iranian drones.

The renewed tensions have raised concerns in global energy markets over the security of oil shipments through the Strait of Hormuz, one of the world’s busiest and most critical oil transit routes.

Meanwhile, financial services firm Citi, in a note released on Wednesday, stated that oil markets had recently shown signs of stability as investors began ruling out worst-case supply disruption scenarios amid reports of ongoing diplomatic engagement between Washington and Tehran.

However, the bank cautioned that uncertainty over the timing and outcome of any possible agreement continued to keep global central banks on alert.

Citi further noted that the prolonged increase in crude oil prices was beginning to fuel broader inflationary pressures, prompting some central banks to consider tighter monetary policies in response to rising energy costs.