Early trading data showed both major oil benchmarks posting gains. At around 00:15 GMT, the U.S. benchmark, West Texas Intermediate crude oil, edged up by 0.01 percent to $98.72 per barrel, while Brent crude oil, the international benchmark, rose 0.6 percent to $103.76 per barrel.
The rise in prices comes amid escalating tensions following military strikes by the United States and Israel on targets in Iran, including the country’s major oil export facility on Kharg Island. The conflict has significantly disrupted oil shipments and raised fears of a prolonged supply shock in the global market.
Markets react cautiously
Asian stock markets showed mixed reactions in early trading. South Korea’s benchmark index, KOSPI, recorded a cautious rebound, climbing 1.3 percent, while Japan’s Nikkei 225 remained largely flat.
Analysts say investors are closely monitoring the impact of rising energy prices on the global economy, as higher fuel costs could increase inflation and slow economic growth in major markets.
Oil supply disruptions deepen
Oil prices have surged sharply since the conflict escalated on February 28, when U.S. and Israeli forces launched attacks on Iranian targets. Since then, prices have risen by between 40 and 50 percent, according to market estimates.
The situation has been compounded by production cuts from Gulf states and logistical disruptions that have left several oil tankers stranded in the region.
Particularly critical is the continued closure of the Strait of Hormuz, one of the world’s most important energy transit routes. The narrow waterway normally handles about 20 percent of global oil and gas exports, making its disruption a major concern for energy markets worldwide.
Warnings from global energy bodies
Speaking on Sunday, Chris Wright described the situation as “short-term pain” for global markets, noting that the temporary closure of the Strait of Hormuz has contributed to the spike in prices. He also suggested the conflict could potentially end within a few weeks.
Meanwhile, the International Energy Agency warned that the war in the Middle East is creating what could become the largest supply disruption in the history of the global oil market, highlighting the risk of prolonged volatility if tensions continue to escalate.
Energy analysts say markets will remain highly sensitive to developments in the region, particularly any further damage to oil infrastructure or prolonged restrictions on shipping routes.