Rising tensions in the Middle East pushed oil prices sharply higher on Tuesday after Iranian-linked attacks and military clashes fueled fears over disruption in the crucial Strait of Hormuz shipping route.Brent crude, the international benchmark, closed at $114.44 a barrel, marking a rise of around 6% on the day, while US benchmark West Texas Intermediate settled 4% higher at $106.42 a barrel. By 7:20 am IST, Brent crude was at 113.7, down 0.79 or 0.69%, and WTI crude stood at 104.7, lower by 1.68 or 1.58%.This comes after the Fujairah Oil Industry Zone, UAE’s biggest oil storage hub was struck by a drone. Emirati officials blamed Iran for the attack, describing it as the first strike of its kind in the region since the April 7 ceasefire.Last week, oil prices had briefly skyrocketed to $126 a barrel, hitting its highest price in four years.Military tensions intensified further when US Central Command said American Army helicopters destroyed six Iranian military speedboats after they posed a threat to vessels in the strait. CENTCOM also said US forces countered Iranian drones, missiles and small boats while escorting two US-flagged ships through the strategic waterway.US President Donald Trump said Iran had “taken some shots at unrelated Nations,” including a South Korea cargo ship, as tensions mounted around “Project Freedom,” his newly announced initiative to help stranded neutral vessels exit the strait.The exchange has placed the already fragile four-week ceasefire between Washington and Tehran under severe strain. Iranian media outlets also projected a more aggressive stance, with Fars reporting that Iranian forces fired on US Navy ships and Tasnim declaring that Iran had “redefined the control zone” in the strait to regulate maritime traffic.Meanwhile, tensions in the region and energy pipelines across the world have continued to escalate ever since the US and Israel launched joint attacks on Iran on February 28. In retaliation, Tehran turned to the strategically crucial Strait of Hormuz, choking supplies across the world.
