New Delhi, April 7 – Global crude oil prices soared on Tuesday, hitting new highs with more than a 3 per cent jump, amid geopolitical tensions and US President Donald Trump's deadline on Tuesday to reopen the Strait of Hormuz to Iran.
Brent crude futures rose as much as 1.69 per cent, or $1.86, to $111.63, reaching a daily high at 9:57 am. US West Texas Intermediate crude futures increased by more than 3 per cent, or $4.15, to $116.87.
Brent crude has seen a gain of over 60 per cent since the conflict began, from $72.48 (February 27) to $119.50 (March 9).
These gains in oil commodities came after President Trump displayed fresh aggression towards Iran in recent posts on a social media platform regarding reopening the Strait of Hormuz.
His post suggested that "hell" would rain down on Tehran if it did not comply with his deadline to reopen the strait on Tuesday night. He also threatened that Iran could be "taken out in one night."
According to him, if no deal is reached, "every bridge in Iran will be destroyed," and "every power plant in Iran will be shut down, burning, exploding, and never to be used again."
On the other side, Iran reportedly rejected the ceasefire plan and continued its fight with the world's strongest economy.
The Strait – which handles roughly one-fifth of global oil flows – has remained disrupted since the conflict began on February 28, causing crude prices to rise by approximately 90 per cent year-to-date, averaging around the $100 mark.
Meanwhile, on the stock market front, global markets were mixed. Indian stock markets traded lower on Tuesday, with the Sensex and Nifty falling by up to 1 per cent.
In the US, Wall Street ended on a mildly positive note, while Asian stocks traded mixed.
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