Oil Market Turmoil: Record Prices Amid Middle East Tensions

Oil prices skyrocket to over $119 per barrel amid supply cuts and the escalating U.S.-Israeli conflict with Iran. The disruptions prompt intense market concerns and may lead to prolonged price hikes affecting global consumers. Top producers, including Saudi Aramco, cut output as geopolitical tensions threaten energy security.

Oil prices soared beyond $119 a barrel on Monday, marking levels unseen since mid-2022. This surge follows major producers' supply cuts and rising fears of shipping disruptions due to the ongoing U.S.-Israeli conflict with Iran.

Brent crude witnessed a record one-day rise, hitting $119.50, while WTI soared to $119.48. Both have shown enormous percentage increases since hostilities began on February 28.

The market structure now suggests severe supply shortages, with front-month Brent contracts showing a record premium. Meanwhile, U.S. gasoline climbed, challenging global consumers with higher costs amid constrained alternatives.

(With inputs from agencies.)