Global oil prices surged past $100 a barrel as the conflict involving Iran disrupted energy flows through the Strait of Hormuz and rattled international markets.
Crude prices nearly touched $110 per barrel after major Middle East producers reduced output while the vital shipping route remained effectively closed due to the conflict, according to CNBC.
US President Donald Trump defended the rise in oil prices, describing it as a temporary consequence of addressing Iran’s nuclear threat.
Taking to Truth Social, Trump wrote, “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!President DJT”
Crude Oil Records Sharp Weekly Surge
According to reports, West Texas Intermediate crude jumped about 20.75 per cent, or $18.83, to $109.75 per barrel. Brent crude rose more than 18 per cent to around $109.48 per barrel.
The surge marks one of the biggest weekly gains in oil futures trading since the early 1980s.
Market concerns have intensified as tanker traffic through the Strait of Hormuz slowed sharply, with ships avoiding the region due to threats and attacks linked to the conflict, The Wall Street Journal reported.
Gulf producers have started cutting output as storage tanks fill up. With export routes restricted, some producers are shutting wells or slowing production.
Financial markets reacted swiftly to the energy shock. Stocks in Asia dropped sharply at the start of trading.
Japan’s benchmark index fell about five per cent, while South Korea’s market dropped more than seven per cent, according to The New York Times.
Analysts warn prices could rise further if the conflict continues, with forecasts suggesting crude may reach $143 per barrel by year-end.
Energy historian Daniel Yergin told The Wall Street Journal the crisis could become ‘by far the biggest disruption in world history in terms of daily oil production’.
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