Oil Prices Rise as Middle East Tensions Escalate
Economy
Global oil prices rose in early trading on Monday as investors assessed the potential impact of escalating Middle East tensions on energy supplies.
US crude oil prices increased by about 8% initially and later traded around $71 per barrel (+5.9%). Brent crude rose by 6.2% to $77.38 per barrel.
Market participants fear disruptions in oil exports from Iran and other Middle Eastern countries. Military tensions in the Persian Gulf, including attacks on ships passing through the Strait of Hormuz, are restricting global energy transport. About 20% of the world’s oil and LNG trade passes through this strategic waterway.
If the conflict continues, fuel prices may rise further, increasing global production costs.
Iran exports about 1.6 million barrels of oil per day, mainly to China. China may seek alternative supply sources and has reserves of up to 1.5 billion barrels.
Safe-haven assets also gained value — gold rose by about 2.4% to $5,371 per ounce.
Asian stock markets opened lower, with major indices in Japan, Hong Kong, Singapore, Thailand and Australia showing declines.
Market participants fear disruptions in oil exports from Iran and other Middle Eastern countries. Military tensions in the Persian Gulf, including attacks on ships passing through the Strait of Hormuz, are restricting global energy transport. About 20% of the world’s oil and LNG trade passes through this strategic waterway.
If the conflict continues, fuel prices may rise further, increasing global production costs.
Iran exports about 1.6 million barrels of oil per day, mainly to China. China may seek alternative supply sources and has reserves of up to 1.5 billion barrels.
Safe-haven assets also gained value — gold rose by about 2.4% to $5,371 per ounce.
Asian stock markets opened lower, with major indices in Japan, Hong Kong, Singapore, Thailand and Australia showing declines.
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