Washington, March 9 Global oil prices surged past $100 per barrel after the conflict involving Iran disrupted energy flows through the strategic Strait of Hormuz, sending shockwaves through international energy and financial markets.
Benchmark crude prices climbed sharply as traders reacted to fears of supply disruptions from the Middle East, a region that accounts for a significant share of global oil exports.
US President Donald Trump defended the surge in oil prices, calling it a temporary consequence of confronting Iran’s nuclear threat.
In a post on Truth Social, Trump said the spike in oil prices would likely ease once the situation surrounding Iran’s nuclear programme is resolved.
“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,” he wrote.
According to CNBC, crude prices briefly approached $110 per barrel after major producers in the Middle East began reducing output while tanker movement through the Strait of Hormuz slowed significantly.
The US benchmark West Texas Intermediate crude jumped about 20.75 per cent, or $18.83, to $109.75 per barrel. Meanwhile, global benchmark Brent crude rose more than 18 per cent to around $109.48 per barrel.
The surge marks one of the sharpest weekly gains in oil futures since the early 1980s, reflecting heightened concerns over the stability of global energy supplies.
Shipping activity through the Strait of Hormuz, one of the world’s most critical energy transit routes, slowed sharply as tanker operators avoided the region amid security threats, according to a report by The Wall Street Journal.
A large portion of the world’s oil and liquefied natural gas shipments passes through the narrow waterway connecting the Persian Gulf to global markets. Any disruption to the route has immediate implications for global energy prices.
Producers in the Gulf have begun adjusting production levels as storage facilities fill up due to reduced export capacity. In some cases, oil wells are being slowed or temporarily shut down.
Financial markets reacted swiftly to the developments.
Equity markets across Asia fell sharply at the opening of trade. Japan’s benchmark index dropped around five per cent, while South Korea’s market declined more than seven per cent, according to The New York Times. Both economies depend heavily on imported energy supplies.
Energy analysts warn that oil prices could rise further if the conflict persists and export routes remain constrained. Some market forecasts suggest crude prices could reach $143 per barrel by the end of the year.
Energy historian Daniel Yergin told The Wall Street Journal that the disruption could potentially become one of the largest in the history of global oil production.
Beyond energy markets, the conflict is also affecting global trade flows. Reports by The Washington Post indicate that missile and drone attacks in the region have slowed commercial shipping and disrupted key trade corridors linking Asia, Europe and the Middle East.
Economists say the economic impact may be more severe for Asia and Europe, which rely heavily on imported oil and gas transported through the Persian Gulf.
While the United States may be relatively shielded due to its strong domestic oil production and growing energy exports, higher global oil prices could still push up fuel, transportation and food costs for consumers worldwide.
Historically, major disruptions in the Persian Gulf have triggered significant economic shocks. Events such as the 1973 Oil Crisis and the Iranian Revolution caused dramatic spikes in oil prices and led to global economic slowdowns.
