Crude Oil Surges Over 3% After Fresh US Strike On Iran

International crude oil prices on Thursday jumped over 3 percent after the United States again struck Iran, dealing a setback to diplomatic efforts that had gained momentum since last week.

During Asian trading hours, the global benchmark Brent Crude was hovering around $97.67 per barrel, up over 3.5 percent from the previous trading price.

WTI Crude, the American benchmark, was also up 3.7 percent at around $92 per barrel.

Oil prices had surged on Tuesday after the United States again launched attacks on Iran in “self-defence”.

The spike in prices this week is in contrast to the drop of over 7 percent last week when the US and Iran were signalling progress on the diplomatic front.

This had raised hopes among traders of a peace agreement that could lead to the reopening of the Strait of Hormuz.

The renewed attacks have again reduced hopes of de-escalation, keeping crude oil prices elevated.

In the latest attacks, the US struck Iran’s Bandar Abbas port. However, no damage or casualties have been reported so far.

Iran also retaliated with attacks on a US base in the region that was believed to be the origin of the US attack on Bandar Abbas, according to Al Jazeera.

Still, both the US and Iran have reiterated that the ceasefire agreement signed in April remains in force.

US President Donald Trump had said on Sunday that an agreement had largely been negotiated and was subject to finalisation between the US and Iran.

“Final aspects and details of the deal are currently being discussed, and will be announced shortly. In addition to many other elements of the agreement, the Strait of Hormuz will be opened,” he had said.

However, the US launched an attack on Iran the very next day, highlighting the fragility of the diplomatic efforts.

On Wednesday, Trump said he was in no rush to sign a deal if it was not a “great deal”.