Global oil prices dropped sharply on Wednesday, reversing gains from the previous session as volatility persisted due to escalating tensions in West Asia.
Brent crude fell around 2.5 per cent to an intra-day low of $100.85 per barrel, while US benchmark WTI crude declined 3.4 per cent to $92.83.
So far this week, WTI prices have fallen nearly 4.7 per cent, while Brent crude has slipped over 2 per cent, reflecting unstable market conditions driven by geopolitical developments.
Despite the decline, risks remain elevated following Iran’s confirmation of the death of senior security official Ali Larijani. His killing marks a significant setback for Iran’s wartime leadership and signals a possible escalation in the ongoing conflict.
The Strait of Hormuz continues to remain at the centre of global concern. The key oil transit route, which carries nearly 20 per cent of global shipments, has seen restricted movement, with vessel traffic increasingly influenced by geopolitical tensions.
Efforts by US President Donald Trump to secure allied support for safeguarding the route have slowed, adding to uncertainty over supply chain normalisation.
Military activity has intensified, with Iran stepping up attacks and US forces targeting sites near the strait, raising fears of prolonged supply disruption.
Oil prices, up nearly 70 per cent this year due to tensions involving Iran, the US and Israel, saw a slight correction after a recent surge.
The spike has pushed US diesel prices above $5 per gallon. Analysts warn volatility will persist amid ongoing geopolitical uncertainty.
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