Brent crude rises 4 percent as US strikes Iran
Brent crude futures settled at 99.58 dollars per barrel after US military strikes in Iran disrupted expectations for a diplomatic resolution to the three-month conflict. The escalation threatens a tentative ceasefire and delays the potential reopening of the Strait of Hormuz shipping corridor.
Brent Crude Oil rose 4% to $99.58 on Tuesday after United States military strikes in Iran disrupted hopes for a ceasefire. The benchmark gained $3.44, reversing a 7% drop from the previous session when markets anticipated a deal to reopen the Strait of Hormuz. Renewed Middle East volatility threatens global energy flows, as the blockaded waterway typically handles 20% of the world's oil and Natural Gas.
### Military Action Stalls Diplomatic Progress The U.S. conducted defensive strikes in southern Iran on Tuesday morning, which the Iranian foreign ministry called a gross violation of a nearly three-month ceasefire. This escalation occurred while Iranian negotiators were in Qatar for talks aimed at halting a three-month conflict. U.S. Secretary of State Marco Rubio said negotiating a final deal to end the war could take a few days.
