Due to huge turmoil in the oil market, crude oil has started boiling. Prices have crossed $100 per barrel. Due to Israel and America’s war against Iran, fuel supplies through the Strait of Hormuz located in the Persian Gulf have been badly affected. According to reports, the price of Brent crude reached the level of around $109 to 114 per barrel, while West Texas Intermediate (WTI) is trading around $109 to 110 per barrel.
US President Donald Trump has defended rising oil prices, calling it a temporary price for action against Iran’s nuclear threat. He wrote on the social media platform Truth Social, “Short-term oil prices will fall sharply once Iran’s nuclear threat ends, a small price to pay for the security and peace of America and the world. Only a fool would think otherwise!”
According to media reports, the oil market has surged due to production cuts by major Middle Eastern oil producers and the effective closure of the Strait of Hormuz. West Texas Intermediate crude has increased by about 20.75 percent or $ 18.83 to reach $ 109.75 per barrel, while Brent crude also increased by more than 18 percent to about $ 109.48 per barrel. This is one of the biggest weekly surges in oil futures trading since the early 1980s, according to experts.
The Strait of Hormuz is one of the world’s most important fuel routes, carrying the majority of global oil and liquefied natural gas. Tanker movements in the region have slowed significantly due to conflict-related attacks and threats, and many ships have begun avoiding the route.
Some producers in the Gulf region have started reducing production due to disrupted export routes. Storage tanks in many places are filling rapidly, forcing some companies to close wells or slow production.
The impact of the rise in oil prices was also visible on the global financial markets. A sharp decline was recorded in Asian stock markets. Japan’s main stock index fell nearly five percent, while South Korea’s market fell more than seven percent. Both economies are heavily dependent on energy imports.
Analysts say oil prices could rise further if the conflict drags on. According to some market estimates, the price of crude oil may reach $ 143 per barrel by the end of the year. Energy historian Daniel Yergin has warned that this situation could become “the largest disruption in the history of the world” in terms of daily oil production.
Economic experts believe that the pressure of this crisis may fall more on Asia and Europe than on America, because these regions are more dependent on fuel supplies coming from the Persian Gulf. However, the increase in global oil prices may also affect American consumers, as there is a risk of increased prices of transportation and food items. In history, events such as the Arab oil embargo of 1973 and the Iranian Revolution of 1979 also created huge booms and economic crises in the global oil market.
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