📈 Global Oil Prices Rise Above US$ 105 Amid Middle East Tensions

Global oil prices surged over 2% on Thursday due to stalling diplomatic negotiations between the US and Iran and persistent global energy supply uncertainties. • Overall Figures & Benchmark Movements: • Brent crude futures rose $2.43 (2.36%) to US$ 105.51/bbl (peaking at US$ 106.50). • WTI futures gained $1.74 (1.89%) to US$ 93.90/bbl. • Drivers & Geopolitical Factors: • Prolonged standoff over demands to lift the US naval blockade and reopen the Strait of Hormuz. • European diesel futures remain near record highs amid market concerns over potential US fuel export restrictions. • Higher geopolitical risk premiums continue to impact international shipping routes and crude pricing. • US Inventory Trends: • Distillate stockpiles fell by 428,000 barrels to 107.4 million barrels. • Crude inventories rose by 3 million barrels to 426.4 million barrels. • Impact on Sri Lanka: • Sustained high global crude and fuel costs directly pressure Sri Lanka's foreign exchange reserves, trade balance, and domestic energy pricing, presenting ongoing cost challenges for core sectors like manufacturing, transportation, and apparel & textiles.