Oil markets remain highly sensitive as conflict-driven uncertainty disrupts shipping routes, pushing prices into sharp swings despite a strong upward trend this year.
Global crude prices slipped after a sharp rally, with ongoing tensions near the Strait of Hormuz keeping supply concerns alive. (IANS image)
Oil prices slipped on Wednesday, giving up more than 3 per cent after rising sharply a day earlier, as markets reacted nervously to fresh developments in West Asia.
The pullback does not signal calm. If anything, it underlines how jumpy the market has become. With tensions involving Iran, the US, and Israel showing no signs of easing, and uncertainty around the Strait of Hormuz still hanging over supply routes, traders are bracing for more swings.
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By around 9:45 am, Brent crude was trading lower near $100.85 per barrel, down about 2.5 per cent. The US benchmark, West Texas Intermediate (WTI), dropped more sharply to around $92.83, falling 3.4 per cent during the session.
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Much of the anxiety centres on the Strait of Hormuz, a narrow passage that carries a significant share of the world’s oil. Movement through the route has slowed and become less predictable, with geopolitical tensions now shaping shipping activity.
Concerns deepened after Iranian parliamentary speaker Mohammad Baqer Qalibaf said the situation in the strait would not return to its earlier state. The comment has raised fresh doubts about how long disruptions could last.
“The Strait of Hormuz situation won’t return to its pre-war status,” Qalibaf said in a post on X.
At the same time, military activity around the region has intensified, including strikes near key areas linked to oil movement. That has only added to fears of supply disruptions.
Even with Wednesday’s decline, oil prices remain sharply higher than they were just weeks ago. Since late February, crude has climbed from around $73 per barrel to above $100.
The surge has been driven largely by concerns that the conflict could disrupt global energy flows. At one point during Wednesday’s trade, prices again touched levels above $103 per barrel.
For the week so far, WTI has fallen close to 5 per cent, while Brent has eased a little over 2 per cent, reflecting the back-and-forth movement in the market.
The impact is already visible on the ground. In the United States, diesel prices have crossed $5 per gallon, pointing to the pressure building up on fuel costs.
Attempts to stabilise the situation have yet to show results. Efforts by US President Donald Trump to bring together allies to secure the route have not moved forward, leaving questions over when supply chains might return to normal.
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