Global crude oil prices have surged to their highest level in six months, with Brent crude settling at $116.72 per barrel and US West Texas Intermediate (WTI) crude rising above $103 per barrel. Concerns over the widening Iran war and threats to energy infrastructure across the Gulf region have heightened uncertainty in global markets.
Key factors driving the surge include Houthi attacks on Saudi Arabia, attacks on oil tankers near the Strait of Hormuz, and reports of renewed US strikes on Iran.
According to the foreign news agency Arab Times, Brent crude futures rose by $3.18, or 2.81 percent, to settle at $116.72 per barrel. During the trading session, Brent prices climbed as high as $117.45 per barrel, marking a nearly six-month high.
US West Texas Intermediate (WTI) crude also recorded a significant increase, rising by $3.50, or 3.52 percent, to $103.27 per barrel.
The report claimed that Saudi oil giant Aramco ordered the evacuation of its Dhahran headquarters amid fears of potential attacks. However, oil shipments through the Strait of Hormuz have continued, indicating that much of the recent price increase is also being driven by concerns over possible supply disruptions.
Rising Oil Prices Fuel Global Inflation Concerns
The surge in oil prices is also affecting the global economy. According to the report, gasoline prices in the United States increased by 9.1 percent in September, while the Consumer Price Index (CPI) stood at 3.7 percent.
In the eurozone, inflation reached 3.8 percent, while energy prices recorded an increase of 18.8 percent.
Citing the International Monetary Fund (IMF), the report said economies in Asia and Europe were facing greater pressure from elevated oil prices. It also claimed that yields on 10-year government bonds in the United States, Germany and Japan had reached their highest levels since 2007, 2009 and 1996, respectively.
Central Banks May Keep Interest Rates High
Higher oil prices are expected to intensify inflationary pressures, potentially prompting central banks to maintain elevated interest rates or consider further increases. The situation could also place additional pressure on stock markets and cryptocurrencies.
According to the report, the IMF has warned that even if the conflict ends soon, elevated oil prices could persist until 2027.
Experts say future developments in the Iran conflict, the security of energy infrastructure across the Gulf region, and the flow of oil shipments through the Strait of Hormuz will remain key factors determining the direction of global crude oil prices.
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