Singapore: Global oil prices climbed sharply on Monday after the military conflict between the United States and Iran intensified, raising fears that one of the world's most important oil shipping routes could face serious disruption. Brent crude, the international benchmark for oil prices, crossed 90 dollars a barrel for the first time in more than a month as investors reacted to the growing uncertainty in the Middle East.
The sharp rise in oil prices came after another night of military action between the two countries. The United States continued its air campaign against Iranian military targets, while Iran launched fresh retaliatory attacks, increasing concerns that the conflict could spread across the region. Financial markets have become increasingly nervous as the fighting shows no signs of slowing, with investors closely watching developments around the Strait of Hormuz, a narrow waterway through which nearly one fifth of the world's seaborne oil passes every day.
Brent crude rose to around 90.87 dollars per barrel during trading, while United States West Texas Intermediate crude climbed to about 84.84 dollars. The increase marks one of the strongest weekly gains for oil prices in recent months. Energy analysts say the market is no longer reacting only to normal supply and demand conditions. Instead, traders are placing a higher value on the growing geopolitical risks and the possibility that oil exports from the Gulf region could be affected.
The Strait of Hormuz has once again become the main focus of global energy markets. Shipping companies have reportedly slowed tanker movements through the area because of security concerns, while insurance costs for commercial vessels have risen sharply. Some ships have also been rerouted to avoid potential attacks. These developments have added to fears that even a temporary disruption in oil shipments could tighten global supplies and push prices even higher.
Reports from international news agencies indicate that the United States has carried out its ninth consecutive night of military strikes targeting Iranian military infrastructure. Iran has responded with missile attacks directed at American interests and allied countries in the Gulf. The latest exchanges have raised fears that the conflict could expand beyond the two countries and involve more nations in the region.
The growing instability has also affected global financial markets. Stock markets in Asia opened lower as investors shifted money into safer assets. Higher oil prices have renewed concerns about inflation, especially at a time when many central banks were hoping to ease interest rates after recent progress in controlling rising prices. Economists warn that expensive oil increases transportation, manufacturing and energy costs, which can eventually lead to higher prices for consumers around the world.
Analysts believe the current rise in oil prices is being driven by several factors. Apart from the military conflict itself, global oil inventories remain relatively low, leaving little room to absorb any major supply disruption. There are also concerns that further attacks could target energy infrastructure or additional commercial shipping in the Gulf, increasing pressure on the market.
Some market experts believe Brent crude could move towards 100 dollars per barrel if the conflict continues to escalate or if oil exports through the Strait of Hormuz are interrupted for an extended period. However, they also note that prices could fall quickly if diplomatic efforts succeed in reducing tensions or if shipping through the region returns to normal.
The impact of higher oil prices is expected to be felt far beyond the Middle East. Countries that depend heavily on imported oil, particularly in Asia, may face larger import bills and higher fuel costs. Airlines, shipping companies and manufacturers could also see operating expenses increase, which may eventually affect the prices paid by consumers.
With military operations continuing and diplomatic efforts showing little progress, energy markets are expected to remain highly volatile in the coming days. Investors, governments and businesses around the world are closely monitoring developments, as the conflict between the United States and Iran continues to shape the outlook for global energy supplies and the wider economy.