Oil Breakout: Crude Surges 13% Above $80 on Middle East War Fears – SUCH TV
Global oil markets jolted sharply higher on Monday as escalating conflict in the Middle East triggered fears of supply disruption, pushing Brent crude up 13% to above $82 per barrel.
Futures for US benchmark West Texas Intermediate (WTI) also jumped nearly 10%, crossing $70 per barrel in early Asian trading.
The surge follows US and Israeli military strikes on Iran, raising concerns that shipping through the strategically vital Strait of Hormuz could be severely disrupted.
Strait of Hormuz in Focus
Roughly 20% of global oil supply transits through the Strait of Hormuz, making it one of the world’s most critical maritime chokepoints.
While the route is not completely shut, analysts warn that insurance premiums and security risks may effectively halt most commercial traffic.
Major shipping companies have already begun suspending fleet movements through the area.
According to analysts, a prolonged disruption could remove between 8 to 10 million barrels per day (bpd) from global supply — a shock that strategic reserves may struggle to offset.
Amena Bakr of Kpler said oil prices could climb toward $90 per barrel if tensions persist, while some experts caution that prices above $100 cannot be ruled out.
Inflation and Growth Risks
The spike in crude prices has reignited fears of global inflation, particularly in energy-importing nations.
Higher fuel, shipping, and transportation costs could ripple across supply chains, slowing economic growth.
The last time oil crossed $100 per barrel was during the early stages of the Russia-Ukraine war, triggering prolonged inflationary pressure worldwide.
Economists warn that if tensions continue for an extended period, the global economy could face renewed recessionary risks.
US Political Implications
Analysts note that elevated energy prices could pose political challenges in the United States ahead of mid-term elections, especially as President Donald Trump had pledged lower fuel costs.
Some observers suggest Iran may seek to keep crude prices elevated to exert economic pressure amid ongoing geopolitical confrontation.
What’s Next?
Markets remain highly sensitive to developments in the Gulf.
Any formal closure of the Strait of Hormuz or direct targeting of energy infrastructure could push prices significantly higher.
For now, volatility is expected to remain elevated as traders assess the risk of prolonged supply disruption.
