Kathmandu— Oil prices have risen sharply following recent attacks between the United States and Iran, with Brent crude climbing over 1% on Tuesday to surpass $91 per barrel. This surge comes after US strikes on Iran's Larak Island and Iranian retaliatory actions against two bases used by US forces in Jordan. The latest tensions have stoked fears of further escalation in the Middle East, contributing to increased volatility in oil markets.

Recent Attacks

The recent attacks include US strikes on Iran’s Larak Island and Iranian retaliatory actions against two bases used by US forces in Jordan. In a television interview, US President Donald Trump pledged a strong response to Tehran's strikes on the King Hussein and Al Azraq bases in Jordan. "We’re going to hit them hard," Trump told Fox News.

Strait of Hormuz Concerns

The Strait of Hormuz, which handles about one-fifth of global oil supplies, remains heavily constrained due to the ongoing conflict. A tanker was reportedly struck by three unknown projectiles while crossing the strait, though no casualties were reported and no group has claimed responsibility.

Market Impact

"Hopes of a near-term deal to open the strait have faded as the conflict appears back on an escalatory trajectory in the wake of recent attacks," Saul Kavonic, head of energy research at MST Financial, told Al Jazeera. "The oil market is increasingly realising we may be in for a protracted 'no war, no peace' situation, with only partial volumes flowing through the strait, that could last well into 2027."

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.