Daijiworld Media Network - New York
New York, Mar 31: Global oil prices surged sharply on Tuesday, with Brent crude climbing above $110 per barrel and West Texas Intermediate (WTI) crossing $100, as supply concerns intensified amid the escalating conflict in the Middle East.
Brent crude rose by $2.26, or around 2 per cent, to $115.04 a barrel in early trade, after hitting its highest level since March 19 in the previous session. Meanwhile, WTI gained $3.10, or about 3 per cent, to $105.96 a barrel, marking its highest level since March 9.
Oil prices have recorded a steep rally this month, with Brent rising nearly 59 per cent in March and WTI jumping about 58 per cent, the sharpest gains since May 2020.
The surge has been largely driven by disruptions linked to Iran’s effective closure of the Strait of Hormuz, a critical route handling nearly one-fifth of global oil supply and significant liquefied natural gas shipments.
Tensions escalated further after Kuwait Petroleum Corporation reported that its tanker Al Salmi, capable of carrying up to 2 million barrels, was struck in an Iranian attack at Dubai port. Authorities have also warned of potential oil spills, adding to supply concerns.
Adding to market volatility, Houthi movement forces in Yemen launched missile strikes targeting Israel, raising fears of disruptions at the Bab el-Mandeb—a vital maritime route linking the Red Sea and the Gulf of Aden.
Analysts warned that simultaneous disruptions at both the Strait of Hormuz and Bab el-Mandeb could severely impact global energy flows, creating a “twin chokepoint” crisis for supply chains.
In response, Saudi Arabia has rerouted a significant portion of its crude exports through the Red Sea. Data showed shipments to the Yanbu port surged sharply last week compared to earlier months.
Meanwhile, US President Donald Trump warned that Washington could target Iran’s energy infrastructure if the Strait of Hormuz is not reopened.
However, Iran has dismissed US peace proposals as unrealistic, even as the White House maintained that talks between the two sides are continuing.
Market participants remain cautious, with analysts noting that there is little clarity on any near-term resolution as both sides remain far apart in their demands.