Global oil prices are rising sharply as the war involving Iran, the United States, and Israel continues to affect the global energy market. The conflict has now entered its third week, and experts say the disruption in oil transport is pushing prices higher.
The price of Brent Crude, the main global oil benchmark, increased to around $106 per barrel. At the same time, West Texas Intermediate, the main US oil price benchmark, rose to about $101.53 per barrel.
This is the highest oil price level seen since mid-2022.
Strait of Hormuz Remains a Major Concern
The biggest reason for the price increase is the situation in the Strait of Hormuz. This narrow sea route is one of the most important oil shipping lanes in the world.
About 20 percent of the world’s oil supply normally passes through this waterway. However, since the war started on February 28, oil tankers have mostly stopped moving through the strait due to safety concerns.
Reports say only a few ships are currently crossing the route each day, compared with normal traffic levels of more than one hundred ships daily.
Read Also: Trump Says US Navy May Protect Ships in Strait of Hormuz as Iran Threats Disrupt Energy Supply
Trump Calls for Global Help
US President Donald Trump has asked other countries to support efforts to reopen the waterway. He said international cooperation is needed to protect oil tankers and restore the flow of oil shipments.
The United States has suggested sending naval ships to escort oil tankers through the strait. However, officials say it may take several weeks before such operations can begin.
Trump also said that the US will work with other countries in the region to make sure oil transport continues safely.
Rising Tensions with Iran
According to reports, Iran has increased pressure in the region after recent military strikes by the United States and Israel.
There are reports that naval mines have been placed in parts of the strait, and several commercial ships have already been attacked since the conflict began.
The United States also carried out strikes on Kharg Island, which is an important location for Iran’s oil exports. However, officials say major oil production facilities have not yet been targeted.
Read Also: US Bombs Iran’s Kharg Island, Warns Oil Facilities Could Be Next as Middle East War Escalates
Countries Try to Stabilize Oil Supply
To control the rising oil prices, several countries are taking steps to increase supply.
Members of the International Energy Agency agreed to release around 400 million barrels of emergency oil reserves. This is one of the largest coordinated actions by the agency.
In the United States, new energy projects have also been approved. Oil company BP received approval for a new offshore project, while Sable Offshore Corp. has been asked to restart oil rigs off the California coast.
Fuel Prices Are Already Increasing
The impact of the oil disruption is already being seen in fuel prices. Data from the American Automobile Associationshows that average gasoline prices in the United States have increased by about 24 percent since the war started.
The average price has now reached about $3.70 per gallon.
Higher fuel prices could affect transportation costs, businesses, and consumers around the world.
Global Economy Faces Uncertainty
The disruption in the Strait of Hormuz could also affect other industries. Fertilizers and many food products pass through this route, so delays in shipping could increase food prices globally.
Experts say oil markets may remain unstable until shipping returns to normal in the region.
For now, the global energy market remains under pressure as governments and businesses closely watch developments in the Middle East.
Mayur is a part time journalist with about 2 years experience. While working in the field of healthcare, Mayur found a passion for finding engaging stories. As a contributor to White Pine Tribune, Mayur mostly covers International Politics and Life Sciences Related Stories
