New Delhi, July 13 (IANS): Global crude oil prices jumped more than 4 per cent on Monday, pushing benchmark prices close to the $80-per-barrel mark after fresh military strikes between the United States and Iran heightened concerns over potential supply disruptions in the Middle East. International benchmark Brent crude gained more than 4 per cent, or $3.28, to trade near $80 per barrel, while US benchmark West Texas Intermediate (WTI) rose 4.55 per cent, or $3.25, to $74.66 per barrel. The rally followed reports that Iran claimed the Strait of Hormuz had been closed until further notice, although the US Central Command (Centcom) rejected the claim and said it had carried out further operations to ensure freedom of navigation through the strategic shipping route.
Market sentiment weakened further after US President Donald Trump suggested that the interim ceasefire agreement and Memorandum of Understanding with Iran were no longer valid, despite ongoing diplomatic engagements between the two countries. According to Centcom, US forces carried out precision strikes on multiple targets across Iran on Sunday in response to Iranian attacks on a Cyprus-flagged container vessel. Reports also indicated that Iran’s Islamic Revolutionary Guard Corps targeted commercial ships, prompting US forces to intercept an Iranian cruise missile and an attack drone. The escalation has raised fears of a prolonged conflict that could affect energy supplies from the region, while global equity markets reacted negatively, with major Asian indices and Indian benchmark indices trading lower.