Oil Prices Soar Past $100 Amid Escalating Middle East Conflict
Image Source: Internet
Oil prices surged past $100 a barrel for the first time in almost four years as major Middle East producers cut production, the Strait of Hormuz remained largely closed, and the United States warned it could deepen a conflict that has already shaken global energy markets.
Several Asian stock markets fell sharply on Monday as oil prices climbed by more than 20 per cent and the US-Israeli war against Iran entered its second week with no sign of easing.
The global oil benchmark Brent rose above $100 a barrel, with Brent crude climbing past $114 a barrel and West Texas Intermediate trading at around $114 a barrel, a 23% and 25% jump from its Friday closing price respectively.
US President Donald Trump tried to reassure consumers, stating that short-term oil prices would drop rapidly once the Iran nuclear threat is over.
The surge comes after US crude prices jumped 36% and Brent crude rose 28% last week, with oil prices climbing sharply as the war has pulled in countries and locations that play a major role in the production and transport of oil and gas from the Persian Gulf.
About 15 million barrels of crude oil, roughly 20% of the global supply, normally pass each day through the Strait of Hormuz, but the risk of missile and drone strikes from Iran has nearly halted tanker movement through the strait.
