LONDON: Oil prices surged past $100 per barrel on Monday, while global equities came under pressure, as a US-imposed blockade on Iranian ports intensified fears of a prolonged disruption to Middle East energy supplies.
Benchmark Brent crude rose 6.5% to $101.38 a barrel, while West Texas Intermediate climbed 6.2% to $102.58, reflecting heightened geopolitical risk premiums in energy markets.
The escalation follows the collapse of ceasefire talks between Washington and Tehran, dampening hopes for a resolution to the ongoing US-Iran War that has rattled global economies.
Investor sentiment weakened further as the United States began enforcing a partial blockade of the Strait of Hormuz—a critical artery through which roughly one-fifth of the world’s oil and gas flows. According to US Central Command, the blockade targets vessels linked to Iranian ports, though transit for other international shipping will continue.
Analysts warn that the disruption could trigger renewed inflationary pressures worldwide. “The term stagflation is resurfacing as geopolitical turmoil threatens growth while driving up costs,” said Russ Mould, investment director at AJ Bell.
Market uncertainty has also shifted focus to corporate earnings, with major companies set to report first-quarter results amid rising input costs and supply chain concerns.
Meanwhile, global equity markets reacted cautiously. Wall Street indices showed mixed performance in late trading, while Asian and European markets largely closed lower.
Analysts emphasise that a full reopening of the Strait of Hormuz remains critical for restoring stability across global financial markets, as energy-driven volatility continues to shape investor outlook.
Story by AFP
