Global oil prices have surged again as tensions in the Middle East intensify, pushing Brent crude back above $100 per barrel despite efforts to stabilize the market.
Prices climbed about 9% to $101.4 a barrel after three cargo ships were reportedly attacked in the Gulf and Iran’s new supreme leader, Mojtaba Khamenei, signaled that Tehran could continue blocking the critical Strait of Hormuz shipping route. The strait is one of the world’s most important energy corridors, through which a large share of global oil and liquefied natural gas exports pass.
The price surge came even after the International Energy Agency (IEA) announced a record release of 400 million barrels of oil from global reserves to offset supply disruptions caused by the escalating conflict involving United States, Israel, and Iran.
Supply disruption fears
Energy markets remain volatile as several Middle Eastern producers—including Iraq, Qatar, Kuwait, United Arab Emirates, and Saudi Arabia—have cut production by at least 10 million barrels per day amid the crisis.
Analysts say the reserve release may not be enough to stabilize the market. According to experts, the world consumes over 100 million barrels of oil per day, meaning even a large reserve release may only provide temporary relief.
Impact on global markets
Rising oil prices quickly affected global financial markets:
- The Dow Jones Industrial Average and S&P 500 both fell about 1.5%
- The Nasdaq Composite dropped 1.7%
- Europe’s FTSE 100, DAX, CAC 40, and IBEX 35 also declined
- In Asia, Japan’s Nikkei 225 closed lower
Global economic concerns
The energy shock is raising fears that inflation could rise again worldwide. Higher fuel prices may force central banks including the Bank of England to delay expected interest-rate cuts.
The conflict has already triggered shortages and precautionary measures in some Asian countries. Long queues have appeared at petrol stations in Philippines, Thailand, and Vietnam as motorists rush to buy fuel. Governments are also introducing energy-saving policies, including remote work for public servants and reduced official travel.
Oil markets have been extremely unstable since U.S. and Israeli airstrikes on Iran on February 28, with Brent crude jumping from about $73 per barrel before the conflict to nearly $120 earlier this week.
Analysts warn that as long as shipping through the Strait of Hormuz remains threatened, oil prices could stay elevated or even rise further posing risks to global economic recovery.
