Daijiworld Media Network - New Delhi
New Delhi, Jun 10: Global crude oil prices moved higher on Wednesday, rising by nearly 1 per cent after the United States conducted military strikes on Iranian targets near the strategically significant Strait of Hormuz, heightening concerns over potential disruptions to global energy supplies.
Benchmark Brent crude advanced about 1 per cent to $93.26 per barrel, while US West Texas Intermediate (WTI) crude gained 0.97 per cent to hover around the $90-per-barrel mark.
The rally in oil prices followed an announcement by the US military that it had carried out what it described as defensive strikes against Iranian air defence systems, ground control facilities and surveillance radar installations in the vicinity of the Strait of Hormuz.
According to the US Central Command, the operation was launched in response to the reported downing of a US Army Apache helicopter in the region. Tehran, however, rejected the allegation, maintaining that the helicopter crash was accidental and denying any involvement.
The latest developments have renewed geopolitical concerns in West Asia, a region critical to global energy markets. The escalation comes at a time when investors had been expecting tensions between Washington and Tehran to ease, making the fresh confrontation a source of uncertainty for financial markets.
Investor sentiment remained cautious amid fears of a broader regional conflict, contributing to weakness across major global equity markets. Market participants were also monitoring reports indicating that US crude oil inventories declined for an eighth consecutive week, further supporting crude prices.
Additional concerns emerged after Iran warned that hostilities could intensify if Israel continued military operations against Hezbollah in Lebanon, adding another layer of risk to the regional outlook.
Asian stock markets largely traded lower, reflecting the risk-off sentiment. Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index both fell more than 1 per cent, while South Korea’s KOSPI registered a sharper decline of nearly 4 per cent.
US markets also ended Tuesday’s session in negative territory, with the Nasdaq Composite losing 0.97 per cent and the S&P 500 slipping 0.26 per cent as investors assessed the implications of rising geopolitical tensions and higher energy prices.
Despite the global uncertainty, Indian equity markets showed resilience during early trade on Wednesday, with benchmark indices gaining up to 0.5 per cent in the morning session.