Oil prices rose sharply while stock markets slipped after additional cargo ships were reportedly struck in the Gulf region, intensifying concerns over global energy supplies. Brent crude briefly climbed above $100 per barrel on Thursday, rising by more than 9% before easing slightly to around $98. The increase came despite efforts by international authorities to stabilise markets.
The International Energy Agency (IEA) recently announced plans to release a record 400 million barrels of oil from emergency reserves in an attempt to offset supply disruptions linked to the conflict between the US, Israel and Iran. However, continued attacks on vessels and threats to shipping routes have heightened fears that energy supplies could remain restricted for an extended period.
The Strait of Hormuz, one of the world’s most important shipping routes for oil and liquefied natural gas, has effectively been closed due to security concerns. Several major oil-producing countries in the region, including Saudi Arabia, Qatar, Kuwait, Iraq and the United Arab Emirates, have reduced production significantly. Analysts say restoring output could take weeks or even months depending on damage to infrastructure and the return of workers and equipment.
Financial markets have reacted nervously to the situation. Major European stock indexes declined, while Japan’s Nikkei also closed lower. Economists warn that persistently high energy prices could fuel inflation and complicate plans by central banks to cut interest rates. Meanwhile, countries heavily dependent on Middle Eastern energy imports have already begun introducing measures to conserve fuel.
