Global oil prices have surged past $116 per barrel as tensions in the Middle East intensify, raising serious concerns about supply disruptions. The international benchmark, Brent crude, climbed more than 3% on March 30, reaching its highest level in nearly two weeks just below its March 19 peak of $119 per barrel.
Since the conflict began, oil prices have jumped nearly 60%, pushing fuel costs higher worldwide and forcing many countries to implement emergency energy-saving measures.
The spike follows escalating rhetoric and military tensions, with Iran signaling readiness for a potential U.S. ground invasion.
At the same time, Iran’s effective blockade of the Strait of Hormuz a critical route for about 20% of global oil and liquefied natural gas shipments has severely disrupted energy supplies, triggering one of the most significant energy crises in decades.
Analysts warn that prices may continue to rise unless shipping traffic through the strait returns to normal. Meanwhile, Donald Trump has threatened to destroy Iran’s energy infrastructure if it does not lift restrictions on the waterway by April 6.
Industry experts say the full impact of the disruption is only beginning to unfold. Greg Newman, CEO of Onyx Capital Group, noted that due to the way oil is transported globally, regions like Europe are just starting to experience shortages.
He expects prices to keep climbing, potentially surpassing $120 per barrel.
Newman emphasized that the scale of the disruption is unprecedented, with record-high supply shortages and physical premiums. He warned that the global economy has yet to fully grasp the severity of the crisis, with its real effects likely to become clearer in the coming months.
