Global Oil Prices Surge Again

HONG KONG: Oil prices continued to rise today after President Donald Trump said that the United States (US) ceasefire with Iran had ended and ordered new attacks on the country following Tehran’s action of shelling commercial ships in the Strait of Hormuz.

Crude oil prices surged yesterday when Trump said the fragile peace deal between Washington and Tehran had ended.

Washington also cancelled the temporary sanctions exemption on Iranian oil.

Both major contracts surged by about eight per cent, with Brent benchmark crude oil exceeding US$80 (RM326.44) per barrel for the first time in two weeks, triggering new concerns about inflation spikes and adverse economic effects.

Trump ordered new attacks yesterday and warned of “far worse consequences” if Tehran continues to attack ships in the Strait of Hormuz, through which one-fifth of the world’s oil supply passes.

“This is retaliation for Iran’s bombing of ships yesterday,” he said in a post on Truth Social.

However, Trump said he expects the latest military escalation to end quickly and left the door open for more negotiations to be held.

AFP