Global Oil Crisis: Brent crude price jumps 25% to USD 116 amid West Asia war, experts warn of USD 150 level

Brent crude prices have witnessed a massive jump of over 25 percent to reach USD 116.5 per barrel on Monday morning. This sudden rise is directly linked to the ongoing high-intensity conflict in West Asia involving Iran, Israel, and the United States. Experts suggest this is the highest price level seen since June 2022, causing fear of high inflation and rising fuel costs globally.

Why did crude oil prices surge so fast?

The global oil market is reacting to severe supply disruptions and geopolitical tensions. Following coordinated US-Israeli strikes on Iran, known as Operation Epic Fury, the situation escalated rapidly. Reports also confirm the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. Because of safety concerns, shipping through the Strait of Hormuz, which handles about 20 percent of global oil, has almost completely stopped.

• Iraq: Southern oil production has dropped by 70 percent.
• Kuwait and Qatar: Both countries have initiated output and LNG cuts.
• Strait of Hormuz: Tanker traffic halted due to insurance cancellations.

What do experts say about the future impact?

Market experts are warning about serious consequences for the global economy. Ajay Bagga, a banking and market expert, told ANI that this price hike reflects a fear premium driven by a projected 20 percent global oil shortage. He warned that if the tension continues, Brent crude could easily touch the USD 150 mark. Bernstein analysts also predict a price range between USD 120 and USD 150.

The impact is already visible in everyday life and financial markets. Regular gasoline prices in the US jumped by 47 cents in just one week to reach USD 3.45 per gallon. Major stock markets took a hit, with Tokyo’s Nikkei 225 plunging over 7 percent. Experts fear this situation will lead to cost-plus inflation, meaning the cost of transport will increase, directly pushing up the prices of food and daily essentials for the common man.