Global energy markets rattle as Iran conflict escalates

Global energy prices surged on Wednesday, March 11, as escalating hostilities in the Middle East fueled fears of supply disruptions in one of the world’s most critical energy-producing regions, according to Al Jazeera.

Oil markets reacted sharply to the continuing conflict involving Israel, the United States and Iran, which analysts say has increased uncertainty across global energy markets.

The international oil benchmark Brent crude, produced in the North Sea, rose by 5.1% to reach $92.23 per barrel.

Meanwhile, the main US benchmark West Texas Intermediate climbed even more sharply, gaining 5.9% to $88.38 per barrel.

Traders responded to growing concerns that the escalating conflict could disrupt oil exports from the region, which remains central to global oil production and maritime energy transport.

Natural gas markets also reacted strongly. Gas prices in Europe and the United Kingdom surged amid fears that the war could interrupt energy supplies.

Markets were also influenced by unconfirmed reports that Iran had begun laying mines in the Strait of Hormuz, one of the world’s most important shipping routes for oil and gas. Any disruption to shipping through the strait could affect the transport of liquefied natural gas to Europe and Asia.

During morning trading, Europe’s benchmark gas price rose by about 5.7%, while the main British wholesale gas contract increased by roughly 6%.

Tensions increased further after the United States Central Command said US forces had “destroyed” 16 Iranian vessels that it said were laying mines near the strategic waterway.

By Tamilla Hasanova