Blitz Bureau
NEW DELHI: Oil prices surged past $100 a barrel as the conflict involving Iran disrupted energy flows through the Strait of Hormuz and rattled global markets. US President Donald Trump defended the spike. He said higher oil prices were a temporary cost tied to confronting Iran’s nuclear threat. “Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump wrote on Truth Social.
West Texas Intermediate crude jumped about 20.75 per cent, or $18.83, to $109.75 per barrel. Brent crude rose more than 18 per cent to about $109.48 per barrel, according to the report.The jump marks one of the biggest weekly gains in oil futures trading since the early 1980s, it said.
The rally reflects fears that the Strait of Hormuz could remain disrupted. The narrow waterway is one of the world’s most critical oil routes. A large share of global oil and liquefied natural gas shipments moves through the Strait. The Wall Street Journal reported that tanker traffic through the Strait slowed sharply as ships avoided the region after threats and attacks linked to the conflict.
Gulf producers have begun cutting output. Storage tanks are filling up. Without export routes, some producers are shutting wells or slowing production. Financial markets reacted quickly.
Stocks in Asia dropped sharply when trading opened. Japan’s benchmark index fell about five per cent. South Korea’s market dropped more than seven per cent, The New York Times reported. Both economies depend heavily on imported oil and gas.
