New Delhi, September 10 (Daily Kiran) : International crude oil prices experienced a significant surge on Thursday, with Brent crude surpassing the $105 per barrel mark. The escalation in military tensions between the United States and Iran has heightened fears of disruptions to global energy supplies. Additionally, strong purchasing activity from China and a sharp decline in oil production from Saudi Arabia have played crucial roles in driving prices upward.
During trading, Brent crude futures saw an increase of approximately 2.63%, reaching around $104 per barrel. This follows the previous session when the global benchmark crossed the $100 per barrel threshold for the first time since July. Prices have now reached their highest levels since May.
The recent spike in oil prices has raised concerns about energy-driven inflation worldwide. If the conflict in the Middle East continues, it could exert pressure on prices for not only oil but also natural gas and diesel, potentially impacting global inflation and economic growth.
Tensions between the US and Iran have escalated over the past week. After a relatively calm period, confrontations have intensified, with little immediate hope for resolution. A senior Iranian official stated that Tehran will not yield to the US naval blockade and warned that retaliatory actions would intensify if the US continues its attacks in the region.
Meanwhile, US President Donald Trump indicated that the conflict might persist until after the midterm elections in November. He also noted that significant relief in gasoline prices may be difficult to achieve in the near future. These comments have strengthened market perceptions that the ongoing conflict, now in its seventh month, could continue to pressure energy markets for an extended period.
Compared to the lows recorded in early August, Brent crude prices have risen by nearly 30%. Efforts to reach a lasting agreement between the US and Iran have faltered, and the resurgence of conflict at the end of August has raised concerns about the security of oil supplies from the Gulf region.
Another major factor contributing to the pressure on oil markets is the sharp decline in Saudi Arabian production. According to a report from OPEC published on Thursday, Saudi production fell to 6.2 million barrels per day in August, marking the lowest monthly level of 2026. This represents a decrease of about 23% compared to July.
This production cut comes at a time when Iran-backed Houthi rebels in Yemen have threatened to target oil supplies from Saudi Arabia’s western coast. The increasing activity of the Houthi group has also heightened pressure on export routes that are used as alternatives to the Strait of Hormuz.
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