March 19, Kathmandu – Oil prices surged after an address by US President Donald Trump. Following the White House statement concerning the ongoing conflict in Iran, Brent crude prices experienced a notable increase. Brent crude, which had been trading around $100 per barrel, showed some volatility during Trump’s speech but saw a significant rise by the end, reaching $105.38 per barrel, a 4% increase.
There had been expectations that Trump would make announcements regarding the Strait of Hormuz. However, since he did not provide new information about the Strait, the price increases were attributed to the uncertainty. The Strait of Hormuz is critically important to the global economy, as nearly 20% of worldwide energy trade passes through this maritime route. Since the conflict that began on February 28, this passage has been nearly closed. Iran has also issued warnings of attacks on vessels transiting the Strait of Hormuz in response to US-Israeli air strikes.
