Global Crude Oil Prices Surge Amid Escalating US-Iran Tensions

New York. Crude oil prices in the global market have sharply increased again. On Monday morning, the international benchmark Brent Crude rose by more than 3 percent, exceeding $116 per barrel.

This price is the highest since March 19, when oil prices briefly reached $119. This increase comes as tensions between the US-Israel and Iran continue to escalate. The oil market became nervous after Iran accused the US of preparing for a ground invasion and stated it was ready for such a scenario. The Speaker of the Iranian Parliament had warned of setting fire to American forces if they entered and punishing its regional allies.

The conflict appears to have deepened over the weekend. Iran-backed Houthi rebels launched a missile attack on Israel for the first time, while Israel expanded its military operations in Southern Lebanon. Meanwhile, Iran has almost completely shut down the Strait of Hormuz, significantly impacting global energy supply. Since nearly 20 percent of the world's oil and liquefied natural gas (LNG) supply passes through this strait, its obstruction is said to have caused the biggest energy crisis in a decade. Since the war began, oil prices have increased by about 60 percent, making fuel prices expensive worldwide.

Many countries have begun implementing emergency measures for energy conservation. This impact is also visible in Asian stock markets. On Monday, Japan's Nikkei 225 and South Korea's Kospi indices fell by more than 4 percent. Analysts suggest that oil prices are likely to rise further until maritime traffic in the Strait of Hormuz returns to normal, following US President Donald Trump's warning that Iran's energy infrastructure would be completely destroyed if it did not relinquish control over the Strait of Hormuz by April 6.