Global oil prices climbed more than five per cent on Wednesday, while stock markets across Europe and Asia declined after United States President Donald Trump declared that the ceasefire with Iran was over.
The renewed tensions followed Iranian attacks on ships navigating the strategic Strait of Hormuz, prompting fresh military strikes by the United States against Iran. Washington also revoked a temporary sanctions waiver on Iranian oil exports.
International benchmark Brent crude rose to nearly $78 per barrel, while West Texas Intermediate (WTI) also gained about five per cent.
Major stock markets in Paris, Frankfurt, London, Tokyo and Seoul recorded losses as investors reacted to escalating geopolitical tensions and concerns over their impact on the global economy.
Market analysts warned that oil prices could climb above $80 per barrel if the conflict intensifies further, particularly if shipping through the Strait of Hormuz is disrupted, a development that could worsen global inflationary pressures.
