Global oil prices jumped sharply as the ongoing West Asia conflict intensified, with Iran-backed Houthis entering the war and escalating tensions across the region.
Benchmark crude Brent surged up to $116.75 per barrel, marking a near 60% rise in March, while US crude (WTI) crossed the $100 mark. The spike comes after the Houthis launched missile attacks on Israel, warning of continued operations unless strikes on Iran and its allied groups stop.
Conflict Expands, Markets React
The widening war—featuring Iran, United States and Israel—has rattled global energy markets. The situation worsened as more US troops were deployed to the region, raising fears of a potential ground invasion.
US President Donald Trump added to tensions by suggesting the possibility of seizing Iran’s key oil export hub, Kharg Island—an idea that could trigger severe retaliation from Tehran.
Strait of Hormuz Crisis Deepens
A major concern remains the Strait of Hormuz, a critical route for global oil shipments. Iran has effectively restricted most maritime traffic through the strait, allowing only limited passage, disrupting global supply chains.
This has already led to:
- Rising fuel prices worldwide
- Fertiliser shortages
- Disruptions in aviation and shipping
New Threat: Red Sea and Saudi Exports
The entry of the Houthis adds another layer of risk. Their potential to target shipping routes in the Red Sea and infrastructure near Saudi Arabia’s Yanbu port could further squeeze oil supplies.
Experts warn that if attacks extend to key Gulf infrastructure or fully block Hormuz, oil prices could skyrocket further. Some projections suggest crude could even touch $200 per barrel if the conflict drags on.
Wider Economic Impact
Beyond oil, the war is impacting global industries:
- Aluminium facilities in Bahrain and the UAE have suffered damage
- Metal prices surged sharply in international markets
- Inflation risks are rising globally
What Lies Ahead?
While diplomatic talks continue, there is no clear sign of de-escalation. The combination of military escalation, supply disruptions, and geopolitical uncertainty is keeping markets volatile—and the world economy on edge.