Singapore: Oil prices continued to rise on Tuesday as the growing conflict between the United States, Israel and Iran increased fears of supply disruptions from the Middle East. Traders and investors are closely watching developments in the region, especially around key oil shipping routes.
Brent crude moved higher for a third straight day, trading close to 79 dollars a barrel, while US crude also recorded gains. Market analysts say the price increase reflects worries that the conflict could spread further and affect oil production and transportation.
The situation has raised serious concerns about the Strait of Hormuz, a narrow waterway through which about one fifth of the world’s oil supply passes every day. Reports indicate that some oil tankers are delaying their journeys or avoiding the route due to security risks and rising insurance costs. Any prolonged disruption in this area could tighten global supply and push prices even higher.
The tensions have also affected global markets. Stock markets in Europe and Asia have shown signs of weakness as energy prices climbed. Economists warn that if oil prices remain high for a long period, it could increase inflation and slow economic growth, especially in countries that depend heavily on imported oil.
Asian nations such as India, Japan and others that rely on Middle Eastern oil are closely monitoring the situation. Some countries are exploring alternative supply options to reduce the risk of shortages.
Energy experts say the market is reacting not only to actual supply disruptions but also to the fear that the conflict could damage oil facilities or block shipping routes. If the crisis deepens or spreads to more countries, oil prices could rise further in the coming days.
For now, global markets remain cautious as diplomatic efforts continue and military actions unfold in the region.