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Global oil prices surged on Tuesday, rising more than 3 per cent as escalating tensions between the United States and Iran rattled energy markets and heightened concerns over supply disruptions.

Brent crude futures climbed to an intraday high of $111.63 per barrel, while US West Texas Intermediate (WTI) crude rose sharply to $116.56, reflecting strong upward momentum driven by geopolitical uncertainty.

The latest spike follows a sustained rally in crude prices since the conflict began in late February. Brent has gained more than 60 per cent over this period, highlighting the scale of market disruption linked to the crisis.

At the centre of investor concern is the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of global oil supply passes. The waterway has faced ongoing disruptions since hostilities intensified, fuelling fears of tighter global supply and pushing prices higher. Crude benchmarks are now trading close to the $100 mark on average this year, with volatility expected to persist.

Market sentiment was further shaken by strong rhetoric from US President Donald Trump, who issued a deadline for Iran to reopen the Strait of Hormuz. In a series of social media posts, he warned of severe consequences if Tehran failed to comply, escalating tensions between the two sides.

Iran, however, has reportedly rejected calls for a ceasefire and continues to engage in the conflict, raising the risk of prolonged instability in the region and further pressure on energy markets.

The surge in oil prices comes amid a mixed performance in global equity markets. Indian benchmarks, including the Sensex and Nifty, declined by up to 1 per cent during Tuesday’s session, reflecting investor caution.

In contrast, US markets ended the previous session on a modestly positive note, while Asian equities traded without a clear direction, underscoring the uncertainty surrounding the evolving geopolitical situation.

Analysts warn that continued disruption in the Strait of Hormuz could lead to further spikes in crude prices, with broader implications for inflation, trade flows and global economic stability.

With IANS inputs