📈 Global Energy: Brent Crude Rises 1.5% Amid US Strikes in Iran

Global oil markets remained highly volatile as targeted geopolitical escalations directly impact global energy supply chains—a critical factor for Sri Lanka's fuel import costs and macroeconomic stability. • Market Figures: Brent crude futures climbed 1.5% ($1.40) to US$ 97.56 a barrel in early Asian trade on Tuesday, recovering slightly from a 7% drop in the previous session. U.S. West Texas Intermediate (WTI) crude edged up to US$ 91.25 a barrel. • Geopolitical Drivers: The U.S. Central Command confirmed defensive military strikes on Iranian boats and missile launch sites in southern Iran following reported explosions near the shipping & logistics chokepoint of Bandar Abbas along the Strait of Hormuz. • Supply Chain Impact: Tehran’s blockade has choked off roughly 20% of global oil and gas flows over the last three months, driving global energy prices up by 50% or more. • Diplomatic Outlook: Despite the strikes, negotiators in Doha reported progress on a memorandum of understanding for a 60-day window to finalize a peace deal. The proposed agreement includes clearing mines from the strait within 30 days to restore free, safe navigation and halt transit fee collections. • Regional Shipments: Early signs of easing friction emerged as tracking data showed four stranded tankers—including three LNG vessels and an Iraqi crude supertanker—successfully departed the strait heading toward Pakistan, China, and India.