🛢️ Global Oil Climbs to 4-Week High Amid Strait of Hormuz Escalation

• Price Surge: Brent crude futures rose 2% (up $1.68) to US$ 84.98 per barrel, following a massive 9.6% surge in the previous session. U.S. West Texas Intermediate (WTI) crude increased by 2.1% (up $1.65) to US$ 79.79 a barrel. Prices are now at their highest level since June 17, 2026. • Geopolitical Triggers: The price spike follows the U.S. reinstating its naval blockade of Iran and intensifying military strikes. Concurrently, Iran launched cruise missile attacks on two UAE tankers in the Strait of Hormuz, resulting in crew casualties, while Yemen's Houthi movement targeted Saudi Arabia. • Impact on Sri Lanka: While this is a global development, rising crude prices directly pressure Sri Lanka's economy by driving up the national import bill for petroleum products. Higher energy costs historically impact production and transport costs for key domestic sectors like apparel & textiles and tea logistics, threatening inflation and putting pressure on foreign exchange reserves. • Market Outlook: Analysts note that while the Strait of Hormuz remains partially open, the competing military objectives have injected severe uncertainty into global energy supply chains, with further risks if regional attacks spread to Red Sea shipping lanes.