By Obas Esiedesa, Abuja
Global oil prices climbed by more than four per cent on Monday, with Brent crude rising to about $79 per barrel, as renewed hostilities between the United States and Iran heightened concerns over disruptions to global crude supplies.
The price rally followed fresh military exchanges between the two countries and Iran’s announcement that it was closing the Strait of Hormuz, one of the world’s most strategic oil shipping routes through which about one-fifth of global crude supplies pass.
Although United States President Donald Trump insisted the waterway would remain open, he announced plans to reinstate a blockade on Iranian ports, saying Iranian ships and their customers would be prevented from entering or leaving the ports, while vessels from other countries would be allowed access subject to a 20 per cent cargo charge.
The renewed tensions have reignited fears of supply disruptions, triggering fresh volatility in the global oil market. Despite Monday’s rally, Brent crude remains below the higher levels recorded earlier this year.
