Oil prices rose significantly on Friday after President Donald Trump issued stern warnings to Iran regarding the Strait of Hormuz. The escalation of tensions raised concerns over potential disruptions to global oil supply in the vital shipping route.

Brent crude futures increased by 2.5% to $65.25 a barrel, while U.S. West Texas Intermediate crude was up 2.8% at $61.10 per barrel. Traders reacted swiftly to Trump’s statement, which emphasized the United States’ commitment to ensure the free passage of ships through the strait.

The warning came after Iran’s Islamic Revolutionary Guard Corps seized a British tanker, further straining relations between the two nations. The Strait of Hormuz is a crucial chokepoint, with around 20% of global oil trade passing through it daily.

Experts believe that further hostilities in the region could lead to sustained higher oil prices. “Any disruption in this area could have far-reaching effects on the global economy,” said a market analyst.

The U.S. has deployed additional military resources to the region, aiming to deter further aggression from Iran. As tensions flare, analysts are closely monitoring the situation for potential impacts on oil supply chains and market stability.

The Strait of Hormuz has been a flashpoint for decades, with previous incidents causing significant fluctuations in oil prices. The geopolitical stability in this region remains critical to maintaining a steady global oil supply.

Source: news source