Global crude oil prices have continued to climb in early trade as investors remain concerned over the passage of oil through the Strait of Hormuz. The prices, which had come down after US President Donald Trump announced the ceasefire on Tuesday, sharply jumped back as Israel began bombing Lebanon on Wednesday, hours after the ceasefire came into effect.
As of 01:00 GMT on Friday, Brent crude oil futures had edged 0.87 per cent higher to $96.75 per barrel. US oil futures were also up more than 1 per cent.
President Donald Trump accused Iran of doing a very poor job of allowing ships through the Strait of Hormuz and warned Tehran against charging vessels to pass through the vital shipping waterway, which handles 20 per cent of global oil supply.
The surge in prices is also associated with the decrease of production announced by the OPEC nations since their infrastructure was hit throughout the war.
Saudi Arabia has reduced its output by 600,000 barrels a day and also reduced the output on its East-West pipeline by 700,000 barrels per day.
This rise in prices has put an additional burden on the major Asian economies, including China, India, Japan, South Korea, and Indonesia.
The uncertainty is triggering inflation, currency depreciation, and losses in the share markets since the war in Iran began.
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