Fears of a blockade in the Strait of Hormuz and escalating tensions between the United States and Iran have triggered a sharp surge in global oil prices and shaken financial markets worldwide.

According to latest market data, US crude oil West Texas Intermediate jumped by 6 percent to reach $102.40 per barrel. Meanwhile, Brent crude oil also climbed by 6 percent, trading around $101 per barrel, reflecting growing fears of supply disruptions.

The tension has also impacted global stock markets. In Pakistan, the PSX 100 Index plunged by 6600 points, closing at 160591 points, marking a significant loss for investors.

Asian markets also remained under pressure, with Hong Kong, South Korea’s KOSPI, and Japan’s Nikkei each declining by around 1 percent. European markets followed the same trend, as Germany’s stock index fell by over 1 percent, while France’s CAC dropped 0.9 percent and London markets slipped by 0.4 percent.

Reports suggest that shipping activities in the Strait of Hormuz have been disrupted, with vessel movement temporarily halted. A large number of ships have been stranded on both sides of the crucial trade route.

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The United States Central Command reportedly warned that restrictions could apply to vessels linked with Iran, potentially limiting access to Iranian ports.

Analysts warn that continued escalation could further spike oil prices and deepen instability in global markets.