Oil Prices Surge as Middle East Attacks Rattle Global Energy Markets
Fears over Strait of Hormuz shipments and Iranian exports push crude higher despite OPEC+ output increase
New York, Mar 2: Oil markets opened sharply higher on Sunday following coordinated US and Israeli strikes on Iran and retaliatory attacks targeting Israel and American military facilities across the Gulf region, intensifying concerns over global supply stability.
Investors reacted swiftly to the risk of supply interruptions from one of the world’s most vital energy-producing regions. Particular attention centered on the Strait of Hormuz the narrow maritime corridor linking the Persian Gulf to global markets after reported attacks on two vessels transiting the route heightened shipping security fears.
Benchmark US crude, West Texas Intermediate (WTI), climbed to nearly USD 72 per barrel in late trading, marking an increase of roughly 8 per cent from Friday’s close near USD 67.
Approximately 15 million barrels of crude move daily through the Strait of Hormuz, accounting for about one-fifth of global consumption. The passage serves as a key export channel for major producers including Saudi Arabia, Iraq, Kuwait, Qatar, the UAE and Iran. Any sustained disruption along this corridor could tighten supplies and drive fuel costs higher worldwide.
Iran had earlier conducted military exercises that temporarily affected navigation in parts of the strait, adding to market sensitivity. Analysts note that even limited interruptions can have an outsized impact given the region’s strategic importance to international trade.
In a development that partially offset market anxiety, eight members of the OPEC+ alliance confirmed plans to raise crude production beginning in April. The group announced an increase of 206,000 barrels per day — exceeding prior expectations. Participating countries include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
Energy analysts caution, however, that additional output may not immediately ease price pressures if export routes remain vulnerable. Market participants appear more focused on the uninterrupted movement of physical cargoes than on headline production targets.
Iran currently exports around 1.6 million barrels per day, primarily to China. Any prolonged disruption to those shipments could prompt buyers to seek alternative suppliers, further tightening global balances and sustaining upward pressure on prices.
