Crude oil neared $95 per barrel after US President Donald Trump warned of more attacks on Iran amid escalating tensions between Washington and Tehran. The US Central Command (CENTCOM) said it began “additional
self-defense strikes” against multiple targets inside Iran on the orders of Trump.
The fresh tensions have put the peace deal hopes in jeopardy, with the existing ceasefire in tatters. Concerns and worries have grown among countries over global energy security to prolong for many more months.
WTI and Brent crude futures jumped over 1.50 per cent for the second consecutive day to reach $91 and $94 per barrel, respectively.
Metals also showed upward momentum, with gold and silver gaining about 0.84 per cent to touch $4,106 per ounce and $64 per ounce.
Asian markets remained mixed amid the heightened tensions. Japan’s Nikkei 225 extended the losses to hit the 3-week lows. The benchmark index, which gained 23 per cent year-to-date, is weighed down by selling pressure in the last few sessions.
South Korea’s Kospi also witnessed a drag on Thursday to open a gap-down at 7,509, compared to the previous day’s close at 7,730.82.
Why Did Fresh Tensions Arise?
The latest military action comes a day after the United States carried out strikes against Iran following Trump’s claim that Tehran had shot down a US Army helicopter. Iran’s Islamic Revolutionary Guard Corps (IRGC) subsequently announced retaliatory attacks against American military bases in the region, further intensifying the confrontation.
Reports from Iran indicated that explosions were heard on the strategic Gulf island of Qeshm, as well as in Bandar Abbas, Sirik and several other locations along the country’s southern coast.
Iranian President Masoud Pezeshkian responded defiantly to the threats, insisting that Iran would not be intimidated by military action.
