Global oil prices climbed above $100 per barrel on Thursday as renewed attacks linked to the conflict involving Iran intensified fears of a severe disruption to global energy supplies.
The surge in prices came despite an unprecedented move by major economies to release massive amounts of crude oil from emergency reserves in an attempt to stabilise the market.
According to the International Energy Agency, the ongoing Middle East conflict is creating what could become the most significant supply disruption in the history of the global oil market.
The agency disclosed that its member nations had agreed to release about 400 million barrels of crude oil from their strategic reserves — the largest coordinated release ever recorded.
However, the intervention failed to calm markets as the crisis escalated following attacks on energy infrastructure and shipping routes across the Gulf region.
Analysts say the situation has been worsened by the shutdown of the Strait of Hormuz, a narrow but crucial waterway responsible for transporting nearly one-fifth of the world’s crude oil supply.
Iranian retaliatory actions against ships and regional energy facilities have significantly slowed maritime traffic, raising fears of a prolonged supply shock.
In one of the latest incidents, two oil tankers operating near Iraq were reportedly attacked, leaving at least one crew member dead while another cargo vessel caught fire after being struck by shrapnel.
Market data showed that global crude production has already dropped sharply as a result of the crisis.
The International Energy Agency estimates that daily global oil supply has fallen by about eight million barrels, with an additional two million barrels of petroleum products affected.
The price of Brent Crude, the international benchmark for oil trading, climbed to as high as $101.59 per barrel during Thursday trading before slightly easing.
Despite the temporary pullback, oil prices rebounded after comments from Donald Trump suggested that preventing Iran from developing nuclear weapons remained a higher priority than controlling oil prices.
The remarks signalled that geopolitical tensions could continue to influence energy markets in the near term.
Industry analysts say the global oil rally has already pushed Brent crude roughly 38 percent higher compared to levels recorded before the conflict began nearly two weeks ago.
The surge in oil prices has also started to affect other sectors of the global economy.
Airlines across the world are adjusting operations as jet fuel costs rise sharply. Air New Zealand announced plans to cancel more than 1,100 flights over the next two months, while Cathay Pacific introduced new fuel surcharges on several routes.
Meanwhile, Air France-KLM said it would increase ticket prices to offset rising fuel expenses.
Financial markets also reacted negatively to the growing uncertainty.
Major stock indices in the United States and Europe recorded losses during trading, while investors shifted toward safer assets amid concerns about rising inflation and potential economic slowdown.
Experts warn that if oil prices remain elevated for an extended period, the impact could trigger widespread inflationary pressures and further strain the global economy.
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