Global oil prices climbed sharply on Wednesday as renewed conflict in the Middle East rattled financial markets, sending stocks lower and raising concerns over global energy supplies.
The surge followed comments by United States President Donald Trump, who said the ceasefire with Iran had ended after fresh attacks linked to the strategic Strait of Hormuz, one of the world’s busiest oil shipping routes. Although Trump indicated that further negotiations remained possible, his remarks heightened fears of a prolonged conflict.
Brent crude, the international oil benchmark, gained more than five per cent to trade close to $78 per barrel, while US benchmark West Texas Intermediate also rose by about five per cent.
The rising tensions triggered a sell-off across major stock markets. European equities fell, with London, Paris and Frankfurt posting notable losses. Asian markets also closed mostly lower as investors reacted to both geopolitical risks and continued concerns over technology stock valuations.
South Korea’s Kospi index recorded one of the biggest declines in the region, while shares of Samsung Electronics and SK hynix fell sharply despite strong demand for artificial intelligence chips. Japan and mainland China also ended the day in negative territory.
In contrast, Hong Kong’s Hang Seng Index advanced as investors bought into Chinese technology stocks, lifting shares of Alibaba, JD.com and Tencent.
The latest escalation comes after the United States launched military strikes on Iran following attacks on ships in the Strait of Hormuz. Iran responded with strikes on US military bases in the Gulf, while Washington also withdrew a temporary sanctions waiver covering Iranian oil exports.
Analysts said the renewed tensions have increased the risk of further disruptions to global oil supplies. They warned that any additional escalation affecting shipping through the Strait of Hormuz could push crude prices even higher.
The US dollar also strengthened against major currencies as investors weighed the possibility that rising oil prices could keep inflation elevated and influence future interest rate decisions by the US Federal Reserve.
