Oil Prices Jump Over 5% as Strait of Hormuz Crisis Deepens, Global Allies Hesitate

Crude prices rose sharply Tuesday, climbing over five percent, amid heightened fears surrounding the Strait of Hormuz. The spike comes as US President Donald Trump called on allies to assist in securing the strait, which Iran has effectively closed. Several countries, including Germany, the UK, Spain, Poland, Greece, Australia, and Japan, rejected or distanced themselves from the request.

The rise in oil prices follows a temporary decline after Fatih Birol indicated that more oil reserves could be tapped if necessary. The IEA previously released a record 400 million barrels to ease market pressures.

Despite geopolitical tensions, global equities mostly extended gains, boosted by technology stocks. Nvidia reported expected revenues of at least $1 trillion through 2027. Analysts also watch upcoming central bank decisions amid concerns over inflation fueled by higher oil costs.

Regional instability continued, with missile interceptions in Qatar, attacks on a tanker off Oman, Israeli strikes on Tehran and Beirut, and drone attacks on UAE and Iraqi oil fields. A drone and rocket attack also targeted the US embassy in Baghdad.

Oil benchmarks at 0815 GMT were:

• West Texas Intermediate: $97.11 per barrel, up 3.9%
• Brent North Sea Crude: $103.47 per barrel, up 3.3%

Markets in Asia and Europe reacted variably, with Seoul, Taipei, and other regional markets rising, while Tokyo and Shanghai slipped. Wall Street closed higher, with investors monitoring Middle East tensions and tech sector earnings for further cues.

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