World oil prices continued to rise for the fourth consecutive day as the conflict in the Strait of Hormuz intensified.
Brent oil benchmark traded around USD85 per barrel, while West Texas Intermediate (WTI) crude oil was close to USD80 per barrel.
This increase occurred after the United States continued its attacks on Iran to ensure that shipping lanes in the Strait of Hormuz could be used safely.
This tension has again sparked concerns about global oil supplies because the Strait of Hormuz is a vital route that handles about a fifth of the world's oil trade.
In addition, Ukraine's continued attacks on Russian oil facilities and tankers have also increased the risk of supply disruptions, thus putting pressure on oil prices.
Carlyle Group senior advisor Jeff Currie said the energy market is currently in a worrying state.
According to him, not only are the routes in the Strait of Hormuz disrupted, but oil production and refining operations in Russia are also at risk.
This situation could cause world oil supplies to become increasingly limited if the conflict continues.
US President Donald Trump has vowed to escalate attacks on Iran until it stops attacking ships in the Strait of Hormuz.
In fact, there are reports that the US is considering a larger operation, including targeting Kharg Island, Iran's main oil export terminal.
However, Iran has insisted that the Strait of Hormuz will remain closed until the US attacks are stopped and the blockade on its ports is lifted.
The International Energy Agency (IEA) has warned that the global economy could be hit hard if disruptions in the Strait of Hormuz are not resolved within weeks.
Although some tankers have managed to pass through the route with the help of the US military, the ongoing uncertainty continues to increase market concerns.
At the same time, US crude oil stocks also fell last week, indicating that demand remains high as global supplies are increasingly stressed. If the conflict drags on, oil prices could continue to rise, affecting fuel costs and inflation in many countries.
