Kamal Ghorui
The Middle East crisis impact has continued to spill across global oil supply chains, once again pushing crude prices beyond the $100 mark. Brent crude, the global oil benchmark, rose slightly after moving past $100 a barrel on Thursday (local time), gaining 0.20% to trade at $100.66 by 0020 GMT. Meanwhile, US benchmark West Texas Intermediate showed little movement and stood at $95.75 a barrel. Earlier this week, oil briefly approached $120 per barrel, its highest level since 2022.Energy markets have been on edge since the United States and Israel carried out attacks on Iran on February 28. Since then, benchmark oil prices have climbed between 40% and 50%. The surge has been driven by production cuts by Gulf states and oil tankers remaining stranded in the Gulf.A key concern for global supply remains the disruption of oil flow through the Strait of Hormuz, a major route for crude shipments.Regional tensions intensified further on Friday. Saudi forces intercepted dozens of drones, while Israel faced missile strikes launched by Tehran.
‘Largest supply disruption’
The International Energy Agency has warned that the ongoing conflict in the Middle East could trigger “the largest supply disruption” the oil industry has ever faced. The authority further added that its oil production is down by at least 8.0 million barrels per day.However, even as crude prices continue to soar, US President Donald Trump has said that the priority remains defeating Iran. Writing on social media, he said overcoming Iran’s “evil empire” was more important than oil prices.The escalating conflict has already triggered sharp reactions in global markets. Earlier in the week, oil returned to the $100-per-barrel level, pushing stocks lower across several major exchanges.Oil prices were at the centre of the market movement. In one session, Brent crude jumped 9.2% to close at $100.46, amid concerns that the war could significantly disrupt oil production across the Persian Gulf and trigger a sharp rise in global inflation.Earlier, Iran’s new supreme leader issued his first statement, saying that Iran would continue attacks on Gulf Arab neighbours and would use the effective closure of the Strait of Hormuz as leverage against the United States and Israel. The strait is strategically vital with almost one-fifth of the world’s oil passing through it. As disruptions continue and shipments struggle to move, producers in the region have started cutting output.Countries around the world are attempting to offset the disruption. On Wednesday, the International Energy Agency announced that its member nations would release 400 million barrels of oil from emergency stockpiles, the largest such release on record.However, analysts have cautioned that these measures offer only temporary relief. If the Strait of Hormuz remains shut for a prolonged period, oil prices could potentially rise to $150 per barrel.
