Oil prices surge as Iran maintains threat to close global shipping route after Trump bombed its nuclear facilities
Oil prices have surged as Iran maintains its threat to close its global shipping route after Donald Trump blew up the country’s nuclear bases.
Asian markets traded lower today amid concerns of disruption to energy markets after the US air strikes ‘obliterated’ Iran’s nuclear facilities on Saturday night.
The dollar strengthened as traders assessed the weekend’s events, with Iran threatening US bases in the Middle East as fears grow of an escalating conflict in the volatile region.
Iran is the world’s ninth-biggest oil-producing country, with output of about 3.3million barrels per day.
It exports just under half of that amount and keeps the rest for domestic consumption.
If Tehran decides to retaliate, observers say one of its options would be to close the strategic Strait of Hormuz – which carries 20 per cent of global oil output.
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