Oil Benchmarks Climb as Middle East Conflict Rattles Global Markets

Oil prices opened higher Sunday as the war in the Middle East continued to strain global supply chains and push energy costs upward.

At about 0015 GMT, the US crude benchmark West Texas Intermediate gained 0.01 percent to $98.72 per barrel. The international benchmark Brent Crude rose 0.6 percent to $103.76.

Equity markets in Asia showed mixed movements. South Korea’s KOSPI rose 1.3 percent in early trading, while Japan’s Nikkei 225 was largely unchanged.

Crude prices have jumped 40 to 50 percent since the United States and Israel began strikes against Iran on February 28. The surge has been driven by production cuts by Gulf states and delays involving oil tankers in the Gulf.

Market participants worry that the spike in energy prices could weaken economic growth and add pressure to inflation worldwide.

The vital shipping route Strait of Hormuz, which normally carries about 20 percent of the world’s oil and gas exports, is effectively closed.

US Energy Secretary Chris Wright said the closure represented “short-term pain” for markets but suggested the war might end “in the next few weeks.”

Meanwhile, the International Energy Agency warned the conflict “is creating the largest supply disruption in the history of the global oil market.”

Strikes by US and Israeli forces on Iranian sites, including the oil export terminal at Kharg Island, have further limited supplies.

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