Middle East War Shock: Oil Prices Rise by Nearly 30% in a Week

The impact of the ongoing conflict in the Middle East is now clearly visible in the global energy market. Crude oil prices in the international market have increased by an unprecedented 30 percent in the past week. On Friday (March 6), oil prices in various international indices rose by 8.5 to 12 percent to exceed $93 per barrel, the highest in the last two years.

The price of Brent Crude Oil, one of the benchmarks in the international market, rose by 8.5 percent to reach about $92.69 per barrel. At the same time, the price of West Texas Intermediate (WTI), the main US oil index, rose by more than 12 percent to exceed $90 per barrel. According to analysts, such a large price increase in a week is very rare in recent years.

According to market analysts, the main reason behind this price increase is the ongoing tension and military conflict in the Middle East surrounding Iran, Israel and the United States. The war has put a strain on energy supplies and transportation in the Persian Gulf region.

The near-total shutdown of shipping in the strategically important Strait of Hormuz has created significant uncertainty in the global energy market. About one-fifth of the world's crude oil and liquefied natural gas are transported through this waterway. As a result, a disruption here would have an immediate impact on international energy supplies.

Meanwhile, attacks on some oil fields in southern and northern Iraq have been reported amid the conflict. As a result, production at a US-run oil field has been temporarily halted. Kuwait has also reportedly started cutting oil production due to capacity constraints.

Economists say that if high energy prices continue for a long time, there could be a risk of inflation rising again around the world. This could hamper global economic growth and make it difficult for central banks to cut interest rates.

Source: TRT World, The Wall Street Journal