The sharp increase is attributed to the fact that the ongoing hostilities between Israel and Iran have not impacted the regional oil supply.
North Sea crude, a European benchmark, ended the session at the Intercontinental Exchange trading $3.22 higher than the $73.23 it closed at on Monday.
Brent crude responded to the ongoing conflict, after five days of cross-border drone and ballistic missile attacks, amid fears that an escalation could disrupt energy infrastructure and oil supplies in the region, which has yet to occur.
Specifically, stock market operators are concerned that Iran might consider blocking the Strait of Hormuz, a strategic chokepoint for oil commerce, as it handles 34% of the world’s maritime oil traffic.
However, today, market analysis firm Kpler stated that the likelihood of Iran closing the Strait of Hormuz remains “low”.
