Global Crude Oil Prices Surge As US-Iran Tensions Raise Supply Disruption Fears

Global crude oil prices rallied on Monday as escalating tensions between the United States and Iran triggered fears of supply disruptions in the Middle East energy market.

Brent crude rose more than two per cent to cross 111 dollars per barrel, while US West Texas Intermediate crude climbed above 108 dollars per barrel.

In India, crude oil futures on the Multi-Commodity Exchange surged over three per cent during trading.

Geopolitical tensions pushed oil prices higher after uncertainty intensified around the Strait of Hormuz, through which nearly one-fifth of global oil and liquefied natural gas shipments pass.

Fresh drone attacks targeting locations in the United Arab Emirates and Saudi Arabia further weakened market sentiment.

Reports of an attack near a UAE nuclear facility increased concerns over a wider regional conflict.

UAE authorities launched an investigation into the strike and asserted the country’s right to respond to what they described as terrorist attacks.

US President Donald Trump further escalated tensions by warning that ‘the clock is ticking’ for Iran amid stalled diplomatic negotiations. He also said Iran must not develop nuclear weapons and called for the reopening of the Strait of Hormuz, a key shipping route for major oil exporters including Saudi Arabia, Iraq and Qatar.

Analysts said concerns over disruptions in global crude supplies continued to push oil prices higher and increase market volatility.

The surge in crude prices also pressured Asian equities, with Japan’s Nikkei and Hong Kong’s Hang Seng falling over one per cent, while South Korea’s KOSPI posted modest gains.

Experts warned that prolonged high oil prices could increase inflation, raise transport and manufacturing costs, and slow global economic growth.

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