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New Delhi, March 7: Global crude oil prices surged above $90 per barrel on Friday as tensions in West Asia escalated. The increase followed strong statements from US President Donald Trump demanding what he called “unconditional surrender” from Iran.
The sharp rise in prices has raised concerns about a prolonged conflict in the Middle East that could disrupt global oil supply and energy markets.
Crude Oil Prices Jump Over 12%
According to market reports, WTI crude oil futures rose 12.2 percent to $90.90 per barrel at the time of filing. Analysts say this is the largest weekly gain since April 2020.
The surge came as investors reacted to increasing geopolitical tensions involving the United States, Israel, and Iran.
Energy experts warn that continued military conflict in the region could keep oil prices high for an extended period.
Strait of Hormuz Supply Risk Raises Market Concerns
Market experts say the conflict has increased worries about supply disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said the ongoing conflict between the United States and Iran could keep oil prices elevated.
He explained that around 20 percent of the world’s oil supply passes through the Strait of Hormuz, making it a critical point for global energy transportation.
Any disruption in this region can quickly impact oil prices and global markets.
Experts Warn of Major Global Oil Supply Disruption
Jim Burkhard, Global Head of Crude Oil Research at S&P Global Energy, said the current situation could lead to one of the largest oil supply disruptions in history if shipping activity declines further.
He noted that earlier Iran had avoided targeting energy infrastructure. However, recent attacks on oil facilities in Saudi Arabia and Qatar have changed the situation.
According to Burkhard, these developments have added new pressure on global oil and gas markets.
Oil Tanker Traffic Declines in Strait of Hormuz
Recent data from S&P Global Energy Commodities at Sea shows a significant decline in tanker movement through the Strait of Hormuz.
On March 1, only five oil tankers passed through the route, compared with an average of around 60 tankers per day in recent weeks.
This sharp drop has increased fears of supply shortages in the global energy market.
Impact on India and Global Economy
Rising oil prices could affect many countries, including India, which depends heavily on crude oil imports.
Higher oil prices may lead to increased fuel prices, inflation, and transportation costs. Analysts warn that prolonged instability in West Asia could create long-term volatility in global energy markets.
Governments and investors are closely monitoring the situation as geopolitical tensions continue to grow.
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