Global oil prices have surged again amid rising tensions in the Middle East after Iran signaled that the Strait of Hormuz, a vital global energy transit route, may not return to normal anytime soon.
Brent crude oil rose about 3% to around $103 per barrel, while U.S. WTI crude increased 3.7% to about $97 per barrel. Meanwhile, U.S. gasoline prices climbed to $3.79 per gallon, marking the highest level since October 2023.
Mohammad Bagher Ghalibaf, Speaker of Iran's Parliament, clearly stated that the Strait of Hormuz will never be the same again and emphasized that there is no longer any security amid the presence of U.S. and Israeli forces in the region.
Tensions escalated further as Iran intensified attacks on energy infrastructure in the Middle East. This caused the United Arab Emirates to suspend gas production at the Shah field near Abu Dhabi, while a drone attack sparked a fire at the Fujairah oil port, and oil facilities in Iraq were also targeted.
Reports also emerged of an oil tanker being attacked by an unknown object near Fujairah. The United Kingdom's Maritime Trade Operations center noted that since late February, there have been more than ten attacks on vessels in the Persian Gulf and Strait of Hormuz.
Global energy risks increased further after Israel claimed it killed Ali Larijani, Iran's security chief, a claim later officially confirmed by Iran.
Analysts point out that oil prices remain more than 40% higher than before the conflict began, as Iran attempts to block transit routes through the Strait of Hormuz, which normally handles around 20% of the world's oil and liquefied natural gas.
Meanwhile, U.S. President Donald Trump called on allies to help reopen shipping lanes, while Europe remains hesitant and reluctant to get involved in the conflict.
The European Union clearly stated that this is not Europe's war, although it acknowledges that energy interests are directly affected. Meanwhile, U.K. Prime Minister Keir Starmer said he is working with allies to restore freedom of navigation but emphasized that Britain will not enter a full-scale war.
The International Energy Agency (IEA) said member countries still have sufficient emergency oil reserves, even as they prepare to release more than 400 million barrels into the global market this week.
However, experts warn that using oil reserves is only a temporary measure, and a long-term solution depends on reopening transit routes through the Strait of Hormuz, which remains highly uncertain at this time.
Source:CNN
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