Global oil prices jumped to their highest in four weeks after the United States reimposed a naval blockade of Iran, reviving fears over energy flows through the Strait of Hormuz and adding fresh pressure on Sri Lanka’s fuel import bill.
Brent crude futures rose US$2.89, or 3.47%, to US$86.19 a barrel, according to figures carried by Ada Derana, the first time the benchmark has traded above US$86 since June. US West Texas Intermediate crude climbed US$1.53, or 1.96%, to US$79.67 a barrel.
The renewed attacks between Washington and Tehran have heightened concern over the Strait of Hormuz, the narrow waterway that carries about a fifth of the world’s daily oil and liquefied natural gas supplies. A tanker was reported attacked off the coast of Oman, while Yemen’s Houthis fired missiles at Saudi Arabia, further unsettling markets already braced for supply disruption.
For Sri Lanka, the price surge lands squarely on the balance sheet of the state-run Ceylon Petroleum Corporation, which imports the bulk of the country’s refined fuel and crude and pays for it in scarce foreign exchange. Every sustained rise in Brent feeds through to landed costs and, ultimately, to pump prices and the wider cost of living.
The latest spike follows Iran’s renewed closure of the Strait of Hormuz and a fresh round of US strikes, an escalation that has already forced Colombo to weigh contingency plans for its energy supply. Authorities have not issued new guidance on fuel pricing in response to Tuesday’s move in crude markets.
