Crude oil prices are seeing a significant increase in the global market, with Brent crude rising more than 3 percent to $116 per barrel, its highest level in nearly two weeks.
According to Arab media reports, oil prices briefly reached $119 per barrel on March 19, but the recent increase has accelerated due to rising tensions in the region.
The sudden increase in prices comes after escalating military tensions between Iran and the United States. Iranian officials say the country is fully prepared for any possible US ground operation, while the speaker of the Iranian parliament has warned that a strong response will be given in the event of an advance by US forces.
The situation in the region has become more tense in recent days when the Iran-backed Houthi group launched missile attacks on Israel for the first time, in response to which Israel has further expanded its military activities in southern Lebanon.
The effects of this tense situation have also been clearly seen on global financial markets, where Asian stock markets are under severe pressure. Japan’s Nikkei 225 and South Korea’s Kospi index closed with a decrease of more than 4%.
Meanwhile, Iran’s obstructions in the Strait of Hormuz have affected the global supply of oil and liquefied natural gas, which accounts for about a fifth of the world’s total energy supply. According to experts, this obstruction is becoming a major cause of the current global energy crisis.
According to reports, oil prices have increased by about 60% since the start of the war, due to which fuel is becoming more expensive around the world and many countries are forced to take emergency measures to save energy.
On the other hand, US President Donald Trump has issued a stern warning to Iran, saying that if control over the Strait of Hormuz is not lifted by April 6, Iran’s energy infrastructure could be targeted.
He also presented a 15-point plan to end the war, but Tehran rejected the proposal and demanded compensation for war damages and recognition of its position on the Strait of Hormuz.
Energy experts say that if movement on sea routes is not restored, oil prices could exceed $120 per barrel, which will have a more severe impact on the global economy, including Europe.