Oil Prices Climb Above $100 as Middle East War Disrupts Global Energy Markets
Global energy markets stay tense amid growing concerns of an extended conflict in the Middle East
Oil prices have surged back above $100 per barrel, as global energy markets continue to face severe pressure amid what analysts describe as the largest disruption to energy supplies in a generation.
Brent crude, the global benchmark, jumped more than 9 percent on Thursday, as traders braced for the possibility that turmoil in energy markets could persist for weeks or even months while the United States and Israel continue their war against Iran. Brent futures traded outside regular market hours were priced at $101.13 as of 03:00 GMT.
The tensions have also rattled global financial markets. Asian stock exchanges in Tokyo, Seoul, and Hong Kong opened sharply lower on Friday, following significant losses on Wall Street the previous night.
The latest spike in oil prices followed a statement by Iran’s Supreme Leader Mojtaba Khamenei, who vowed to maintain the effective closure of the Strait of Hormuz, a strategic waterway that normally carries nearly 20 percent of the world’s oil supply.
In a message broadcast on Iranian state television, Khamenei described Tehran’s threats against shipping in the strait as a strategic “lever” that must continue to be used.
Meanwhile, US President Donald Trump adopted a similarly firm stance, writing on Truth Social that preventing Iran from obtaining nuclear weapons was of “far greater importance” than rising oil prices.
Shipping Through Strait of Hormuz
Shipping traffic through the Strait of Hormuz has nearly stalled due to Iranian threats, with only a handful of vessels crossing the waterway each day. Many of the ships still passing through claim connections to China, Iran’s key economic partner.
According to the United Kingdom Maritime Trade Operations (UKMTO) center, no more than five ships per day have been transiting the strait since the United States and Israel launched joint strikes on Iran on February 28. Before the war, the average was around 138 daily transits.
The UKMTO also reported that at least 16 commercial vessels have been attacked in the region since the conflict began. Tehran has acknowledged responsibility for several incidents, including a Wednesday attack on a Thai flagged vessel off the coast of Oman, which left the ship severely damaged.
Global Efforts Fail to Calm Markets
Attempts to stabilize markets have so far had little impact. Oil prices are now nearly 40 percent higher than they were before the war began.
On Wednesday, the International Energy Agency (IEA) announced that member countries would release 400 million barrels of oil from emergency reserves, but the move failed to reassure traders who estimate a daily global supply shortfall of 15–20 million barrels.
Similarly, a decision by the US Treasury Department on Thursday to issue a temporary license allowing countries to purchase sanctioned Russian oil stranded at sea did little to influence markets. Brent crude remained above the $100-per-barrel mark following the announcement.
Energy security expert Adi Imsirovic of the University of Oxford said the main concern for traders is the uncertainty surrounding the war.
“The key problem is the lack of clear, tangible goals in this conflict,” “That makes it difficult for oil traders to see any light at the end of the tunnel.” he said.Possible US Naval Escorts
President Trump has repeatedly suggested deploying the US Navy to escort commercial vessels through the Strait of Hormuz. However, the Pentagon has so far avoided launching such operations due to concerns about Iranian attacks in the narrow and strategically sensitive waterway.
Speaking to CNBC on Thursday, US Energy Secretary Chris Wright said '' Washington is not ready yet '' to begin naval escort missions, though such operations could start by the end of the month.
“It will happen relatively soon, but it cannot happen right now,” Wright said.Watch This Video
