Global energy concerns remained high on Tuesday as the conflict between the United States and Iran continued for another day. These tensions put pressure on the Strait of Hormuz, a vital shipping route, and also affected crude oil prices.
The price of Brent crude oil reportedly rose above $85 per barrel for the first time in a month. This came as US President Donald Trump imposed a blockade on Iranian ships passing through the strait and demanded payment for all other goods, according to a Bloomberg report.
The report added that oil rebounded to its highest levels in about a month, reducing its decline in the second quarter by about 30 percent. Follow the latest updates on the US-Iran war here.
Crude oil price today
The price of Brent crude, the global oil benchmark, rose 1.63 percent to $84.60 per barrel.
“There are some headwinds blowing again which may impact the Indian market in the near term. The escalation in the US-Iran conflict has pushed Brent crude to US$84. If this rally continues it will again start impacting India’s macroeconomic units,” VK Vijayakumar, chief investment strategist at Geojit Investments Limited, said according to news agency PTI.
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Petrol and diesel prices in Indian cities
According to Goodreturns, here are the petrol and diesel prices in some major Indian cities:
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Tensions in the Strait of Hormuz
Earlier, US President Trump announced the return of the US naval blockade on Iranian ports. He also added that Washington would impose fees on ships crossing the Strait of Hormuz.
“The Strait of Hormuz is open and will remain open, with or without Iran. We are reimposing the Iranian blockade, so called because it only prevents Iranian ships or agents from entering or exiting. All other countries will have fair and open use of the Strait,” Trump said in a post on the Truth Social website.
He added: “The United States will, from now on, be known as the ‘Guardian of the Strait of Hormuz,’ but as such, and as a matter of fairness, it will be reimbursed 20% on all cargo shipped, for any and all costs necessary to carry out the mission of providing safety and security to this very troubled part of the world. The process and formation will begin immediately.”
Afterwards, Iranian Foreign Minister Seyed Abbas Araqchi, in a post on X, said, “POTUS is absolutely right. Whoever provides safe and secure passage for commercial ships through the Strait of Hormuz should be compensated for this service.”
The Iranian minister added: “Iran has always been the guardian of the Strait and will remain so forever. Of course, 20% is too much. We will be fair.”
