Oil Prices Surge Amid Middle East Tensions

Since late February, a significant escalation in the Middle East has directly impacted vital energy infrastructure.

The primary cause is the closure of the Strait of Hormuz, a critical maritime passage that typically handles 20% of the world’s oil and LNG supply.

Following military strikes, approximately 40 energy assets across nine countries have suffered damage, forcing major producers like the UAE and Kuwait to cut output.

Consequently, Brent crude prices have surged by 50%, often exceeding $110 per barrel.

This "war premium" extends beyond oil; shipping costs have skyrocketed, and shortages in natural gas are now disrupting sectors like agriculture and manufacturing.

While the IEA has released emergency stocks, analysts warn that these measures are only a temporary fix.