Middle East conflict drives oil prices higher amid supply disruptions

Oil prices continued their upward trend as markets opened on Sunday amid ongoing disruptions to global supplies caused by the Middle East conflict.

At 0015 GMT, West Texas Intermediate (WTI), the US benchmark, was marginally higher by 0.01% at $98.72 per barrel, while Brent crude, the international benchmark, rose 0.6% to $103.76 per barrel.

Stock markets in Asia showed mixed reactions: South Korea’s Kospi gained 1.3% in early trade, while Japan’s Nikkei remained flat.

The surge in oil prices—up 40 to 50% since the February 28 US-Israeli attacks on Iran—has been fueled by production cuts from Gulf states and blockades affecting oil tankers. The Strait of Hormuz, a key shipping route handling about 20% of global oil and gas exports, remains effectively closed.

US Energy Secretary Chris Wright described the situation as “short-term pain,” noting that prices have risen sharply but expressing hope that the conflict could conclude in “the next few weeks.” Meanwhile, the International Energy Agency (IEA) warned that the crisis represents the largest supply disruption in the history of the global oil market.

Strikes on Iranian facilities, including the major oil export hub of Kharg Island, have further tightened supplies, stoking fears of slower economic growth and rising inflation worldwide.