Oil prices surge after reports of Strait of Hormuz blockade

Global oil markets witnessed a sharp rise following reports of a blockade in the Strait of Hormuz, a key route for global energy supplies.

The price of Brent crude jumped by $7, crossing $102 per barrel, while West Texas Intermediate (WTI) rose by around $6.5 to reach $103 per barrel.

Shipping costs in the Gulf region also surged significantly, with insurance premiums for vessels increasing by as much as 1,000%.

Reports indicate that a tanker carrying oil worth $150 million would now require approximately $7.5 million in insurance premiums.

Meanwhile, global demand for alternative energy sources is rising. China has taken a lead in this sector, with exports from Chinese renewable energy companies increasing by 57%.

On the other hand, OPEC has expressed concerns that global oil demand could decline amid shifting energy trends.