Washington: Global oil prices climbed sharply again on Friday as renewed tensions between the United States and Iran increased fears of a wider conflict in the Middle East and possible disruptions to global energy supplies.
The latest rise in crude oil prices came after reports of fresh military exchanges between the two countries despite ongoing diplomatic efforts to maintain a fragile ceasefire. Traders and investors reacted quickly to the uncertainty, pushing benchmark oil prices to their highest levels in several weeks.
Brent crude, the international benchmark for oil prices, crossed 101 dollars per barrel during early trading, while U.S. West Texas Intermediate crude approached 96 dollars per barrel. Energy analysts said the market is being driven largely by fears that the conflict could spread further across the Gulf region.
The growing concern is centered around the Strait of Hormuz, one of the world’s most important oil shipping routes. Nearly one fifth of global oil supplies pass through the narrow waterway every day. Any threat to shipping traffic in the area immediately affects energy markets around the world.
Investors became nervous after Iran accused the United States of carrying out attacks on an Iranian tanker and other targets despite the ceasefire agreement announced earlier this week. Washington denied the allegations and insisted that its military operations were defensive in nature. U.S. President Donald Trump later said that the ceasefire was still technically active, although both sides continued accusing each other of violations.
Oil prices have been swinging sharply over the past several days as markets reacted to every new development in the crisis. Earlier this week, prices had briefly fallen after reports suggested that Washington and Tehran were close to reaching a broader understanding that could reopen shipping lanes and reduce tensions in the Gulf.
However, those hopes weakened after new explosions were reported near the Iranian port city of Bandar Abbas and additional attacks targeted ships and energy facilities in the region. Reports also suggested that Saudi Arabia and Kuwait were considering increased naval security cooperation with the United States to protect commercial vessels moving through the Strait of Hormuz.
Energy experts warned that even a temporary disruption to Gulf shipping routes could have serious economic consequences worldwide. Several oil tankers are reportedly waiting outside the Strait because of security concerns, while insurance costs for ships operating in the region have also increased sharply.
Analysts estimate that Iran’s oil production has already fallen by hundreds of thousands of barrels per day since the conflict intensified. Although global oil supplies remain stable for now, traders fear that a prolonged crisis could reduce exports from the Middle East and create shortages in international markets.
The impact of rising oil prices is already being felt in many countries. Nations that depend heavily on imported fuel are expected to face higher transportation and energy costs in the coming weeks. Economists also warned that another major oil shock could increase inflation pressures at a time when many countries are still struggling with slow economic recovery.
Financial markets around the world remained cautious on Friday, with investors moving money into safer assets such as gold and government bonds. Airline and shipping company shares also faced pressure because higher fuel costs could affect profits.
Meanwhile, American authorities have reportedly started investigating unusual oil market trades worth billions of dollars that were made shortly before major announcements related to the Iran crisis. Officials are examining whether any traders had advance information about political or military developments that influenced oil prices.
Experts say the next few days will be critical for global markets. If the ceasefire survives and diplomatic talks continue, oil prices may stabilize. But if fighting increases again or shipping routes in the Gulf are blocked, analysts warn that crude oil prices could rise far beyond current levels, creating wider economic uncertainty across the world.