Mumbai, March 16: Rising tensions in the Middle East have led to a significant increase in global crude oil prices. This surge follows U.S. attacks on military bases located on Iran’s Kharg Island over the weekend.
By approximately 10:25 AM, Brent crude had risen by 1.59% to reach $104.77 per barrel, while WTI crude saw a 1.07% increase, trading at $97.87 per barrel.
The U.S. strikes on the strategically important Kharg Island, crucial for Iran’s oil exports, have prompted the IRGC to target U.S. military bases in Israel and Arab nations, escalating regional tensions.
U.S. President Donald Trump has warned that further attacks on Iran’s energy infrastructure, which accounts for nearly 90% of the country’s oil exports, could occur if Tehran disrupts shipping through the Strait of Hormuz.
Trump has also called on other nations to assist in securing this vital maritime route, which connects the Persian Gulf’s oil and gas supplies to global markets.
Reports indicate that Washington has urged major oil-importing partners like China and Japan to deploy naval vessels in the strait to ensure the safe passage of tankers. Approximately one-fifth of global oil shipments and a significant volume of LPG transit through this waterway.
In an effort to prevent potential Iranian attacks, the U.S. has ordered its Fifth Fleet to ensure the safety of commercial vessels in the region.
The attack on Kharg Island has intensified the conflict, leading to what the International Energy Agency (IEA) describes as the largest supply disruption in the history of the global oil market. Since the escalation of tensions, maritime traffic through the Strait of Hormuz has nearly come to a standstill.
Meanwhile, the United Arab Emirates has resumed freight operations at its key export hub, Fujairah port, following a drone attack that temporarily halted shipments along the country’s primary export route during the blockade.
Brent crude prices surged nearly 11% last week, reaching a high of $119.50 per barrel, a level comparable to post-Russia’s invasion of Ukraine, before stabilizing just above $103 per barrel.
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