Summary: Global oil prices rose sharply on Tuesday following the collapse of the ceasefire between the United States and Iran, and threats by the US military to resume its naval blockade of Iranian ports.
(CNN) — Global oil prices rose sharply on Tuesday following the collapse of the ceasefire between the United States and Iran, and threats by the US military to resume its naval blockade of Iranian ports.
Brent crude, the global benchmark, reached $87 a barrel before the opening of US markets, its highest level since June 12. Meanwhile, West Texas Intermediate (WTI), the US benchmark, rose by 3.6% to approach $81 a barrel.
The status of the vital Strait of Hormuz, through which one-fifth of the world's oil passed before the war, has once again been thrown into doubt. Tehran announced the "closure" of the waterway over the weekend, and President Donald Trump stated that the United States would become the "protector" of the strait, and would charge commercial shipping companies 20% of the value of their cargoes in exchange for Washington's protection.
The US Central Command announced on Monday that it intends to resume the naval blockade on ships entering and leaving Iranian ports starting at 4:00 p.m. Eastern Time on Tuesday. The United States had previously imposed a blockade for nearly two months starting in mid-April, which contributed to a significant rise in oil prices.
US stock futures pointed to a mixed opening, with the Dow Jones falling by 0.2% and the S&P 500 by 0.1%, while the tech-heavy Nasdaq rose by 0.4%.
European stock markets were trading lower in the early afternoon local time. The Stoxx Europe 600, the region's main index, fell by 0.5%, while Germany's DAX fell by 0.5%, and France's CAC fell by 0.7%. As for Asian markets, they ended Tuesday's session mostly higher.
Original source: arabic.cnn.com