Crude Oil Price Today: America and Israel jointly took military action on several targets in Iran on 28 February. According to the information, Iran’s Supreme Leader Ayatollah Ali Khamenei has died in this attack. After which the situation in the entire West Asia has become more sensitive.

Uncertainty has increased in this area which was already facing tension. In such an environment, activities in the crude oil market have intensified and investors’ eyes are now fixed on oil prices. This tension is going to have a direct impact on oil importing countries like India…

Iran closed Hormuz Strait

Amidst this ongoing dispute between the two countries, the Iranian government has announced the closure of the Strait of Hormuz. Due to this decision of Iran, it is feared that the prices of crude oil may touch the sky.

Talking about the reason behind this, 20 percent of the world’s crude oil is supplied through this route. This means that due to closure of the road, there will be a reduction in the supply of crude oil, due to which the prices are expected to increase.

The price of crude oil may increase further due to supply disruption

Amidst the fluctuations in the oil market, prices have gained momentum recently. According to news agency Bloomberg, the price of West Texas Intermediate, a retail trading product of IG Group, at one time reached $ 75.33 per barrel.

Which was about 12 percent more than Friday’s closing level. According to other media reports, crude oil prices may go up to $76 to $81 per barrel.

Importance of Homuz Strait

Homuz Strait is located between Iran and Oman. It connects the Persian Gulf to the Gulf of Oman. It is counted among the important energy chokepoints of the world. Qatar, which is the world’s largest LPG exporter, sends almost its entire LPG supply through this route.

This is the reason why there is a possibility of fluctuations in the oil market due to the closure of Homuz Strait.

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