Impact of Iran-US-Israel Conflict: Crude Oil Crosses $100, Panic in Markets

With the start of the trading week, crude oil prices in the international market saw a massive surge, crossing the $100 per barrel level.

Due to rising tensions in the Gulf region, fears of disrupted energy supplies have intensified, creating an atmosphere of worry in markets worldwide.

On Monday, the US benchmark WTI crude rose sharply by $15.66 to reach $106.56 per barrel, recording a heavy gain of about 17.23%. Meanwhile, Brent crude also surged by $14.23 to $106.92 per barrel.

Until Friday, oil prices had been hovering around $90, but the worsening situation in the Middle East over the weekend completely changed the market dynamics.

This sharp rise in crude oil prices is primarily due to the ongoing conflict between Iran and the US-Israel over the past ten days. The US and Israel targeted Iran's military and energy facilities, including a major fuel depot in Tehran.

Meanwhile,energy experts' biggest concern is the Strait of Hormuz. This sea route is considered extremely critical for supplying a large portion of the world's crude oil. So far, Iran has not closed this route, but it has warned that if the conflict escalates further, any commercial ship linked to the US or Israel could be targeted. If any obstruction occurs on this route, a further sharp surge in global oil prices could be seen.

There is also unrest in the US over the rising prices. US Energy Secretary Chris Wright described the current surge as a result of market panic and said it could be temporary.

Meanwhile, White House Press Secretary Karoline Leavitt stated that actions against Iran's current regime could prove beneficial for the oil industry in the long term.

In the meantime, US President Donald Trump also reacted via social media, saying that oil prices have risen due to the conflict, but it should be seen as the cost of security.

According to him, as soon as Iran's nuclear threat is eliminated, oil prices could fall rapidly.