By Abiola Olawale
Tensions in the Middle East have erupted into a full-blown energy crisis as oil prices have skyrocketed to a five-month high.
According to reports, Brent crude soared by 2.6% to $79 per barrel, while U.S. West Texas Intermediate (WTI) climbed 2.6% to $75.76.
This comes hours after the United States launched airstrikes on three Iranian nuclear facilities.
The development also comes as Iran’s parliament voted to block the Strait of Hormuz, a critical artery for global oil trade, sparking fears of supply disruptions.
Recall that Iran is OPEC’s third-largest crude producer and pumps about 3.3 million barrels per day, according to official reports.
Reports emerged over the weekend that Iranian lawmakers voted to support closing the Strait of Hormuz following a US strike on the country.
The New Diplomat reports that the Strait of Hormuz is a vital chokepoint through which a fifth of the world’s crude oil flows.
About 20 per cent of the world’s oil, estimated at 17 to 18 million barrels per day, passes through the Strait of Hormuz.
A senior Iranian lawmaker who spoke with the press on Sunday revealed that the parliament (Majlis) had agreed to close the key artery for world energy trade as a response to the U.S. aggression against their country.
The lawmaker said legislators had reached a consensus on the closure of the strait, though Iran’s Supreme National Security Council has the final decision.
