WTI Crosses $102, Brent Hits $104 as US Strikes on Iran's Kharg Island Rattle Oil Markets

Global crude oil prices have surged sharply as tensions rise in the Middle East. The increase followed strikes by the United States on military targets on Iran’s Kharg Island, escalating the conflict with Iran. As the conflict enters its third week, concerns about disruptions to global oil supplies have pushed prices above the $100 per barrel mark.

The U.S. benchmark oil price, West Texas Intermediate (WTI), climbed to about $102.4 per barrel during early trading before slightly easing later. Meanwhile, the global benchmark Brent crude traded around $104 per barrel after rising by more than 3 percent earlier in the day.

The surge in prices is mainly due to fears of supply disruptions in the Persian Gulf region. Iran launched retaliatory attacks after U.S. strikes targeted facilities on Kharg Island, which handles nearly 90 percent of the country’s oil exports. This escalation has increased uncertainty in global energy markets.

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Another major concern is the situation in the Strait of Hormuz, a critical route through which about one-fifth of the world’s oil and gas supplies pass. U.S. President Donald Trump has warned that further Iranian actions could lead to additional attacks on energy infrastructure. The United States has also asked allied countries to help protect oil tankers passing through the strait.

Because of the conflict and shipping disruptions, oil prices rose sharply last week, with Brent crude gaining about 11 percent and reaching a high of $119.50 per barrel. Experts warn that if the conflict continues or shipping through the Strait of Hormuz remains blocked, global oil prices may rise further, affecting fuel prices, inflation, and economies worldwide.

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