KATHMANDU: Global oil prices have spiked above $100 per barrel following the failure of high-level talks between the United States and Iran in Islamabad. The sudden surge was triggered immediately as Asian markets opened, reacting to the breakdown of a fragile two-week ceasefire.
Market volatility intensified after U.S. President Donald Trump announced plans to impose a total blockade on Iranian ports. Consequently, the international benchmark, Brent Crude, jumped 8.5% to reach $102.37 per barrel. Similarly, West Texas Intermediate (WTI) saw a 9% increase, climbing to $105.34 per barrel.
Just last week, fuel prices had dipped below the $100 mark after Washington and Tehran tentatively agreed to a temporary truce and the reopening of the strategic Strait of Hormuz. However, with the collapse of diplomacy, fears of a deepening global energy crisis have resurfaced. The Strait of Hormuz, which facilitates nearly one-fifth of the world’s total crude oil shipments, remains a central flashpoint of the conflict that began on February 28.
While nations like India and Malaysia have attempted to negotiate safe passage for their individual vessels, global supply chains remain severely disrupted. The combination of rising energy costs and escalating wartime tensions has also triggered a significant downturn in major Asian stock markets, reflecting widespread economic anxiety.
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