International crude oil prices have climbed above $100 per barrel for the first time in nearly four years as global markets react to rising tensions linked to the conflict involving United States, Israel and Iran.
The price surge pushed both major crude benchmarks past the $100 threshold, raising concerns about potential disruptions to global oil supply routes in the Middle East.
Brent crude futures rose above $100 during early morning trading on Monday.
Brent was selling for about $107.97 per barrel after trading from its previous closing price of $92.69 on Friday. Meanwhile United States benchmark West Texas Intermediate (WTI) was selling for about $106.22 per barrel, its highest since 2022.
The rise in price followed renewed military confrontations and attacks involving Iranian forces and energy facilities across parts of the Middle East, a region that supplies a large share of the world’s crude oil.
Oil markets reacted quickly as concerns grew that further escalation could interrupt the flow of crude shipments from the Arabian gulf, one of the world’s most important oil exporting regions.
Energy markets depend heavily on crude supplies from the region, which exports millions of barrels of oil everyday to Asia, Europe and North America.
The biggest concern for oil markets remains the Strait of Hormuz, a narrow maritime passage that links the Persian gulf to global shipping lanes.
About 15 million barrels of crude move through the strait each day, representing roughly 20% of global supply transported by sea.
The waterways serves as the primary export route for major oil producers including Saudi Arabia, Iraq, Qatar, Kuwait, the United Arab Emirates and Iran.
The route has now been shut for about ten days now, as Iran tightens its restriction on oil cargoes in the region.
How Middle East tensions are pushing oil markets higher
The current rise in crude prices have intensified across several parts of the Middle East.
Military exchanges involving missile strikes and attacks on strategic sites have increased uncertainty in energy markets, which tend to react sharply to geopolitical risks in oil producing regions.
Oil markets have historically responded strongly to conflicts in the Middle East because the region holds some of the largest crude reserves in the world.
Several major exporting countries in the world millions of barrels of crude daily and ship those supplies to global markets through a limited number of maritime routes.
Any escalation affecting some of these supply channels could reduce the availability of crude oil to importing countries, therefore pushing prices higher.
Higher crude prices can also increase the cost of refined fuel such as petrol, diesel and aviation fuel across international markets.
Energy traders, however, continue to monitor developments in the region closely as further disruptions to produce facilities or shipping routes could tighten global oil supplies further.
