Kathmandu: Global oil prices spiked sharply on Tuesday as escalating tensions between Israel and Iran sent ripples across financial markets, raising concerns over supply disruptions and geopolitical instability.
West Texas Intermediate (WTI) crude for July delivery rose by $3.07, or 4.28%, to settle at $74.84 per barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for August delivery climbed $3.22, or 4.4%, closing at $76.45 per barrel on the London ICE Futures Exchange.
The International Energy Agency (IEA) has expressed concern over rising uncertainties in the global oil market. While earlier projections indicated that oil supply would outpace demand by 2025, leading to a more stable market by 2030, the growing geopolitical risks—particularly the ongoing Israel-Iran conflict—have cast doubt on those forecasts.
In its latest monthly report, the IEA noted that Israel’s recent strikes on Iranian facilities have triggered fluctuations in oil prices, although the direct impact on Iran’s oil production remains unclear.
Major energy companies have also warned that further escalation could have serious consequences for global energy infrastructure. As the situation develops, markets are expected to remain highly sensitive to any news related to the conflict or potential supply disruptions.
