New York: Oil prices soared about 8 per cent to their highest since July 2024 on Tuesday, rising for a third session as the US-Israel war against Iran intensified.
On Tuesday, the price for a barrel of Brent crude, the international standard, leapt another 7.8 per cent to $83.84. That’s up from close to $70 less than a week ago. A barrel of benchmark US crude, meanwhile, rose 8.8 per cent to $77.52.
Oil prices made the jump as Iran struck the US Embassy in Saudi Arabia, part of a widening of targets that also includes areas critical to the world’s oil and natural gas production.
Worries are particularly high about the Strait of Hormuz off the coast of Iran, a narrow passageway where roughly a fifth of the world’s oil passes. That makes it crucial for the global flow of crude.
“The Strait of Hormuz is closed,” declared Iranian Brig Gen Ebrahim Jabbari, an adviser to the paramilitary Revolutionary Guard, vowing that any ships that passed through it would be set on fire.
Making things uncertain for markets are rising questions about how long this war may continue.
A major attack by the United States and Israel has already killed Iranian Supreme Leader Ayatollah Ali Khamenei, but President Donald Trump said late Monday night on his social media network, “Wars can be fought forever,’ and very successfully” with the supply of munitions that the United States possesses.
The jump for oil prices will worsen inflation, which has remained too high for nearly everyone, and put more pressure on US households and businesses by raising bills for gasoline and to ship products.
The average price for a gallon of gasoline in the US jumped 11 cents overnight to about $3.11, according to data from motor club AAA.
That has the damage in stock markets so far centering on countries and companies that use a lot of oil, natural gas and petroleum-
based fuels.