Global oil prices surged sharply as the war involving the United States, Israel, and Iran raised fears of major disruptions to the world’s energy supply.
The international oil benchmark Brent Crude climbed to about $92.69 per barrel, rising 8.5% in a single day and nearly 30% for the week. Meanwhile, West Texas Intermediate crude in the U.S. jumped more than 12%, reaching above $90 per barrel.
One of the main reasons for the spike is the disruption of shipping through the Strait of Hormuz. This strategic waterway handles roughly one-fifth of the world’s oil and liquefied natural gas shipments. Due to rising tensions and attacks in the region, maritime traffic there has almost stopped.
The situation worsened after U.S. President Donald Trump said that only the “unconditional surrender” of Iran would end the conflict. Analysts say the statement reduced hopes that the war would end quickly, increasing fears of a prolonged crisis.
Energy markets are also concerned about reports of attacks on oilfields in Iraq and reduced oil production in Kuwait due to storage problems. These disruptions add more pressure to global energy supplies.
At the same time, new economic data from the U.S. showed the economy lost about 92,000 jobs in February, according to the United States Department of Labor. Retail sales also fell slightly, signaling a slowdown in economic activity.
Normally, weaker economic data could lead the Federal Reserve to lower interest rates to support growth. However, rising oil prices could push inflation higher, making it harder for the central bank to cut rates soon.
As a result, global stock markets reacted negatively, with major indices in both the U.S. and Europe ending the day with noticeable losses.
Source: TRT World
