Oil prices rose as markets opened on Sunday, with both major benchmarks recording gains amid ongoing conflict in the Middle East that has disrupted global energy supplies.
At about 00:15 GMT, the United States benchmark, West Texas Intermediate, edged up by 0.01 percent to $98.72 per barrel. Meanwhile, Brent crude, the international benchmark for oil prices, increased by 0.6 percent to $103.76 per barrel.
In the Asian stock markets, Kospi in South Korea posted a cautious rebound, rising by 1.3 percent in early trading. However, Japan’s Nikkei 225 remained largely unchanged.
Oil prices have surged significantly since the United States and Israel launched attacks on Iran on February 28, triggering tensions across the region. With several Gulf states cutting production and oil tankers stranded in the Gulf, global oil prices have reportedly increased by between 40 and 50 percent since the start of the conflict.
Investors are increasingly concerned that rising energy costs could slow global economic growth and further fuel inflation.
The situation has also affected the strategic Strait of Hormuz, a vital shipping route through which about 20 percent of the world’s oil and gas exports normally pass. The passage currently remains largely closed due to the conflict.
US Energy Secretary Chris Wright described the disruption as “short-term pain” that has contributed to the spike in oil prices, expressing hope that the conflict could end within a few weeks.
Meanwhile, the International Energy Agency has warned that the ongoing war in the Middle East could result in the largest supply disruption ever experienced in the global oil market.
Military strikes by the United States and Israel on Iranian facilities, including the major oil export hub at Kharg Island, have further intensified supply concerns in the global energy market.
