KATHMANDU: Oil prices rose sharply after Donald Trump announced a naval move targeting Iran. The decision came after ceasefire talks between the US and Iran collapsed over the weekend.
The global benchmark Brent crude jumped more than 8 percent to cross $103 per barrel. It returned above the $100 level after briefly falling below it last week.
The US said it will restrict vessels linked to Iran in the Strait of Hormuz. However, US Central Command later clarified that general shipping will not be fully blocked. The measure is set to take effect Monday.
The strait carries about one-fifth of global oil and gas supply. Traffic has already dropped sharply since recent US-Israeli strikes and Iran’s response.
Market impact was immediate. Major Asian stock markets opened lower on Monday, reflecting rising uncertainty in global trade and energy supply.
