News Screen – World oil prices strengthened again at the beginning of this week as conflict tensions in the Middle East increased, especially after Iran closed the Strait of Hormuz again, which is a vital route for global energy distribution.
The closure came just a day after the route had been reopened, amid tensions due to the blockade imposed by the United States on Iranian ports. This situation immediately prompted a spike in global benchmark crude oil prices.
The price of West Texas Intermediate was recorded to have risen around 6.5 percent to 89.27 US dollars per barrel, while Brent strengthened 6.2 percent to 95.96 US dollars per barrel.
Also Read: World Oil Prices Rise and Stock Exchanges Weaken Due to Fears of Iran Ceasefire
Tension and Diplomacy Go Hand in Hand
The price increase occurred towards the end of the two-week ceasefire period in the area. Military incidents, including actions by US warships against Iranian ships, also worsened market sentiment.
However, hopes for diplomatic channels still support market players’ optimism. US President Donald Trump stated that an agreement with Tehran was getting closer. However, this statement was immediately denied by the Iranian side, which emphasized that there were no plans to continue negotiations in the near future.
Previous negotiations that took place in Islamabad on April 11 also failed to produce an agreement, while Iran continues to require lifting the blockade as the main prerequisite for continued dialogue.
Impact on Global Markets
In the midst of this uncertainty, the Asian stock market actually showed strength. A number of major indices such as the Nikkei in Tokyo, the Hang Seng in Hong Kong, and the Shanghai Composite recorded increases, following the positive trend on Wall Street, including the S&P 500 and Nasdaq.
In contrast, European exchanges such as London, Paris and Frankfurt experienced pressure. Meanwhile, the US dollar strengthened again after weakening at the end of last week.
Market analysts assess that current conditions reflect high uncertainty, where the potential for military escalation and the opportunity for a diplomatic agreement go hand in hand.
As long as a comprehensive agreement regarding Iran’s nuclear program has not been reached, the ceasefire is considered fragile and vulnerable to change at any time.***
