Middle East strikes push oil prices to seven-month high

Metro India News | new york

Oil prices surged sharply on Monday after US and Israeli strikes on Iran, followed by retaliatory attacks targeting Israel and American military installations in the Gulf, rattled global energy markets and raised fears of supply disruptions.

Benchmark crude prices recorded their steepest single-day gains in months. West Texas Intermediate (WTI) rose 8.6 per cent to USD 72.79 per barrel, up from around USD 67 on Friday, according to CME data. Brent crude, the global benchmark, climbed 9 per cent to USD 79.41 per barrel, marking a seven-month high.

Market participants fear that escalating hostilities could disrupt shipments through the Strait of Hormuz, a narrow passage that handles nearly 15 million barrels of crude per day — about 20 per cent of global oil supply. Recent attacks on vessels transiting the strait have intensified concerns over the safe movement of oil exports from major producers including Saudi Arabia, Iraq, Kuwait, Qatar and the UAE.

Energy analysts warned that any prolonged disruption in the Gulf could push crude and fuel prices even higher, adding pressure on inflation-hit consumers worldwide.

In response to the rising tensions, eight OPEC+ members, including Saudi Arabia and Russia, announced plans to increase output by 206,000 barrels per day in April. However, experts said additional production may offer limited relief if export routes remain constrained.

Iran exports about 1.6 million barrels of oil daily, largely to China, and any interruption could further tighten global supplies and sustain upward pressure on prices.