NAIROBI, Mar 30 – Brent crude is on track for a record monthly surge as escalating conflict in the Middle East intensifies supply concerns and disrupts key global energy routes.
Brent futures rose $2.43, or 2.16%, to $115 per barrel in early trading, building on a 4.2% gain in the previous session. West Texas Intermediate also climbed to $101.50 per barrel, up 1.87% after a strong rally last week.
Prices have surged by roughly 59% this month, marking the steepest monthly increase on record and surpassing gains seen during the Gulf War.
The latest spike follows attacks by Yemen’s Iran-aligned Houthi group on Israel, expanding a conflict that began with U.S. and Israeli strikes on Iran on February 28. The widening hostilities have heightened fears over disruptions to global oil flows.
The closure of the Strait of Hormuz, a critical corridor for roughly one-fifth of global oil and gas supply has already tightened markets significantly. Analysts now warn that the conflict is spreading beyond the Gulf into other strategic routes.
Attention is increasingly shifting to the Red Sea and the Bab el-Mandeb, both vital for global crude and refined product flows, as risks to shipping intensify.
According to analysts at JPMorgan, the market is now pricing in a prolonged escalation, with limited expectations for a near-term diplomatic resolution despite signals from Donald Trump that talks with Iran are ongoing.
Saudi Arabia has begun redirecting crude exports away from the Strait of Hormuz to the Red Sea port of Yanbu, with flows reaching approximately 4.66 million barrels per day last week. However, further disruptions could force additional rerouting through Egypt’s SUMED pipeline.
The evolving situation has left global energy markets on edge, with traders closely watching developments across multiple chokepoints that underpin the world’s oil supply chain.
