Mumbai : The crude oil price has surged past $100 per barrel for the first time in over three and a half years, driven by escalating conflict in Iran that has disrupted production and shipments from the Persian Gulf. Brent crude traded at $107.97 per barrel, up 16.5% from Friday’s close of $92.69, while U.S. West Texas Intermediate (WTI) crude reached $106.22, a 16.9% rise.
The spike comes as the Iran war enters its second week, affecting critical oil and gas infrastructure and halting tanker movements through the Strait of Hormuz, which accounts for about 20% of daily global oil shipments. Iraq, Kuwait, and the UAE have already cut production due to storage constraints, further tightening supply and fueling fears of prolonged energy shortages.
Impact on Global Markets
The surge in crude oil price has rattled financial markets worldwide. U.S. stock futures pointed to sharp declines on Monday, with S&P 500 futures down 1.6%, Dow futures off 1.8%, and Nasdaq futures falling 1.5%. In the previous week, Brent crude rose 28% and U.S. crude jumped 36%, reflecting heightened supply concerns amid geopolitical tensions.
Also read : Nifty 50 Share Price Likely to Fall on Monday as Global Volatility Hits Markets
In the U.S., gasoline prices have spiked, with regular fuel reaching $3.45 per gallon—47 cents higher than last week—and diesel at $4.60 per gallon, up 83 cents. Energy Secretary Chris Wright assured that gas prices would fall back below $3 a gallon “before too long,” but market analysts warn that sustained crude oil price levels above $100 could strain the global economy.
Geopolitical Drivers
The conflict has directly affected oil infrastructure in Iran, with recent Israeli strikes on Tehran depots killing four people. Iran exports roughly 1.6 million barrels daily, primarily to China. Disruptions in exports could increase global demand elsewhere, further elevating the crude oil price.
The surge is not limited to oil—natural gas prices have also climbed, trading at $3.33 per 1,000 cubic feet, up 4.6% from Friday, indicating broader energy market volatility.
Outlook
Analysts expect continued market sensitivity to geopolitical developments, with potential for further crude oil price fluctuations depending on conflict escalation and supply chain disruptions. Investors are closely monitoring energy markets, as sustained high oil prices could impact inflation, consumer spending, and global economic growth.