Oil prices surge again as global tensions rise in the Middle East. Oil prices surge past $116 per barrel after new warnings from Iran about a possible US invasion.
Brent crude increased more than 3 percent on Monday morning. It reached its highest level in nearly two weeks, showing strong pressure on global energy markets.
Iran’s leadership said it is ready for any US military action. Officials warned that any foreign troops entering the country would face a strong response.
The situation became more serious over the weekend. Iran-backed groups launched missiles towards Israel, while Israel expanded its military operations in southern Lebanon.
Global markets reacted quickly. Major Asian stock indexes fell sharply, with heavy losses seen in Japan and South Korea.
A key reason behind the oil prices surge is disruption in the Strait of Hormuz. This route carries a large share of the world’s oil and gas supplies. Any blockage affects global energy flow immediately.
Reports suggest that around one-fifth of global oil and LNG supplies have been impacted. This has increased fears of a major energy crisis worldwide.
Oil prices surge has already pushed fuel costs higher in many countries. Governments are now taking emergency steps to control energy use.
Experts believe prices may continue to rise if shipping activity does not return to normal. Limited vessel movement in the region is still affecting supply chains.
US President Donald Trump warned Iran of serious consequences. He said the US could target Iran’s energy infrastructure if tensions continue.
However, Iran has rejected US proposals and presented its own conditions for peace. These include compensation for war damages and control over key waterways.
Market analysts say the full impact of the crisis is still unfolding. They warn that economic data in coming months will reflect the real damage.
Some progress has been seen as a few international ships are now passing through the strait. Pakistan also confirmed that its vessels have been allowed safe passage.
Despite this, overall traffic remains far below normal levels. Before the conflict, over 100 ships passed daily through the route.
The oil prices surge remains a major concern for the global economy. Any further escalation could push prices even higher in the coming weeks.
