Oil Prices Surge Amid Middle East Turmoil

Oil prices soared to near $120 per barrel as the Iran war intensified, disrupting production and shipping in the Middle East. The conflict has affected economies worldwide, driving up fuel costs and shaking financial markets. Analysts warn of potential economic strain if high prices persist.

Oil prices skyrocketed close to $120 per barrel early Monday as escalating conflict in Iran threatens production and shipping lanes in the Middle East, impacting global markets. Brent crude soared to $119.50 before settling at $112.98, while West Texas Intermediate peaked at $119.48, later dropping to $110.17.

The conflict's relentless toll on civilian infrastructure was highlighted by Bahrain accusing Iran of targeting a crucial desalination plant and Israeli strikes setting Tehran's oil depots ablaze. This disruption led to reduced oil travels through the critical Strait of Hormuz, which sees 15 million barrels daily.

The cascade effect of rising energy costs is rippling through global industries, particularly hitting Asia which relies heavily on Middle Eastern imports. US gasoline prices soared, following similar patterns seen in 2022 post-Russia's Ukraine invasion. Analysts speculate sustained high prices could destabilize worldwide economies.

(With inputs from agencies.)