Global oil markets recorded fresh volatility on Monday as traders reacted cautiously to the ongoing Middle East crisis that has rattled energy supply chains and heightened fears of prolonged disruptions in global crude flows.
The tension centres around the strategic Strait of Hormuz, one of the world’s most important oil transit corridors linking the Persian Gulf to global markets. The conflict involving Iran and Western allies has threatened shipments through the route, which handles a significant share of the world’s daily crude exports.
As at the time of writing (2:30 WAT), oil prices were slightly lower despite the continuing geopolitical uncertainty. West Texas Intermediate crude traded at $95.53 per barrel, down 3.22 per cent, while Brent crude stood at $102.40 per barrel, reflecting a 0.74 per cent decline.
In the Middle East market, Murban crude fell more sharply to $107.80 per barrel, representing a 5.69 per cent drop, while natural gas prices edged down to $3.116, a 0.48 per cent decrease.
Energy analysts say the war involving the United States and Iran has already triggered one of the biggest oil supply disruptions in modern history. Market estimates indicate that about 20 per cent of global oil supply has been affected for several days following security restrictions around the Strait of Hormuz.
The scale of the disruption is said to be larger than the supply shock recorded during the Suez Crisis of 1956, when military conflict temporarily disrupted about 10 per cent of the world’s oil supply, highlighting the potential impact of the current Middle East crisis on global energy markets.
Energy experts warn that while prices dipped slightly in early trading, the outlook for oil markets remains uncertain as governments and traders closely monitor tanker movements and security developments across the Gulf region.