Crude Oil Price Today: The US carried out airstrikes on more than 80 Iranian military bases and reimposed restrictions on oil sales. Iran has also warned of retaliation.

Crude oil prices on fire

Crude Oil Price Hike: After a brief decline, crude oil prices are now on the rise again. Global markets have been thrown into turmoil after US President Donald Trump announced the cancellation of the US-Iran peace deal. This has again led to a rise in crude oil prices in the global oil market. Crude oil prices rose another 1% on Thursday, following a 5% jump in the previous trading session.

What is the price of crude oil today?

Brent crude oil is trading around $78.80 per barrel today, posting fresh gains. Meanwhile, US crude oil (WTI) also rose 1.01% to $74.26 per barrel, gradually approaching the psychological level of $80. The July futures contract on India's Multi Commodity Exchange closed yesterday at a record high of 6.71% at ₹7,155 per barrel. 
 

Why are prices suddenly increasing?

The renewed US-Iran military offensive has increased the risk of disrupting oil supplies through the Strait of Hormuz, a sea route vital for energy shipments. Approximately 20% of the world's crude oil travels through this narrow channel.

Another reason for the sudden increase in oil prices is the US Treasury Department's withdrawal of concessions granted to Iran to legally sell crude oil. This has also increased the risk of a shortage in the global crude oil market.

Ship traffic halted at Hormuz.

According to a Bloomberg report, the Strait of Hormuz has been blocked for oil tankers and LNG vessels due to the escalating tensions between the US and Iran. Sensing danger, many ships are now diverting to the Cape of Good Hope. Hormuz is a vital sea route for energy shipments, dependent on numerous countries, from Saudi Arabia to Kuwait, Iran, and Iraq. Consequently, its blockage could lead to a sudden global shortage of crude oil.