Oil prices have surged to $100 per barrel for the first time since May, driven by growing fears that the escalating conflict between the United States and Iran could severely disrupt global energy supplies. The sharp rise in Brent crude reflects mounting concerns over instability across the Middle East, where key shipping routes essential to the world’s oil trade are increasingly under threat.
The conflict has expanded beyond the Strait of Hormuz to the Red Sea, creating fresh uncertainty for energy markets. The situation worsened after Yemen’s Iran-backed Houthi group claimed responsibility for missile and drone attacks targeting two Saudi oil tankers. The latest developments have raised concerns over the security of one of the world’s most critical oil transport corridors.
Analysts warn that if the Houthis succeed in disrupting shipping through the Red Sea, Saudi Arabia could lose access to a significant portion of global export routes. Such a scenario could remove nearly 4 percent of the world’s oil supply from international markets, tightening supplies and placing additional pressure on prices. According to analysts at RBC Capital Markets, the conflict has entered a far more dangerous phase, with the potential for a broader regional war.
Market experts also believe current oil prices may not yet fully reflect the geopolitical risks building across the region. RBC analysts noted that a full-scale regional conflict could push Brent crude as high as $150 per barrel, a move that would have far-reaching consequences for the global economy. Brent prices have already climbed nearly 40 percent since the conflict began, while U.S. crude has followed a similar upward trend.
The latest price surge is expected to increase fuel costs worldwide, adding pressure to consumers and businesses already grappling with high transportation expenses. Although oil prices briefly eased in June, limited refinery capacity and continued uncertainty over Middle East supply routes have kept gasoline and diesel prices elevated. As tensions persist, governments, businesses and consumers will be closely watching developments that could further reshape the global energy market.
source: newtelegraph
