CAIRO, Mar 6 – Global oil prices have climbed sharply as escalating conflict in the Middle East disrupts shipping through the strategic Strait of Hormuz, one of the world’s most critical energy transit corridors.
Brent Crude futures surged to $90 per barrel for the first time in nearly two years, while West Texas Intermediate climbed above $85, marking its highest level since April 2024. Oil futures have risen more than 20% over the past week as supply fears intensified.
The disruption stems from escalating hostilities involving United States and Israel against Iran, a conflict that has now drawn in multiple countries across the Persian Gulf region.
According to estimates from Citigroup, the turmoil could be removing between 7 million and 11 million barrels of crude oil per day from global supply due to the severe disruption in shipments through the Strait of Hormuz.
The impact is already spreading across the region’s energy infrastructure. Reports indicate that Kuwait has begun scaling back production at certain oil fields after storage facilities reached capacity, highlighting the logistical strain caused by halted exports.
Energy markets remained volatile even after Donald Trump signaled possible action to reduce pressure on oil prices. The United States Department of the Treasury also relaxed restrictions allowing India to purchase some Russian crude cargoes currently stranded at sea.
Meanwhile, Japan is reportedly considering releasing crude from its emergency reserves to stabilize domestic supply, although no formal decision has been made.
Energy analysts warn that the situation could escalate further if disruptions persist. Goldman Sachs said prolonged supply interruptions through Hormuz could push oil prices beyond $100 per barrel. Separately, Qatar’s energy minister warned that crude prices could surge as high as $150 within weeks if tanker traffic remains blocked.
The Joint Maritime Information Center reported that commercial shipping through the Strait of Hormuz has nearly halted due to security threats, insurance restrictions, and operational uncertainties.
Roughly 20 million barrels of crude oil and petroleum products typically pass through the Strait every day, representing about one fifth of global oil supply, according to the International Energy Agency.
As the conflict escalates, military exchanges have intensified across the region. Iran launched missile and drone attacks across the Persian Gulf overnight, while Israel continued airstrikes inside Iranian territory. Iranian Foreign Minister Abbas Araghchi said Tehran had no intention of entering negotiations and warned the country was prepared for further escalation.
The geopolitical crisis is also putting pressure on global economies. Rising oil prices have renewed concerns among central banks about a potential resurgence of inflation.
In response to the surge in fuel costs, the U.S. Department of the Interior said the administration is evaluating several options, including a potential release from the nation’s Strategic Petroleum Reserve.
Meanwhile, Asia’s largest economies are taking steps to secure domestic energy supplies. China has instructed major refiners to halt exports of diesel and gasoline in order to prioritize domestic demand, while Japanese refiners have urged their government to release oil from national reserves.
Market analysts say the duration of the conflict will determine whether energy markets stabilize or face a prolonged supply shock in the months ahead.
