Oil & gas surge as Iran war disrupts West Asian output

Oil and gas prices experienced a significant surge on Monday as ongoing military actions involving Israel and the U.S. against Iran led to the shutdown of oil and gas facilities in the region. The conflict has notably disrupted shipping routes in the critical Strait of Hormuz, a vital passage for global oil transport. Brent crude futures saw a rise of up to 13%, reaching $82.37 a barrel, the highest level since January 2025, before settling at $77.79, a 6.75% increase. Similarly, U.S. West Texas Intermediate crude increased by 5.77% to $70.89, after peaking at $75.33. The escalation in oil prices poses a threat to the global economic recovery and may amplify inflationary pressures, potentially impacting U.S. gasoline prices ahead of midterm elections. Analysts warn of increased volatility in energy markets and a possible shift in global oil and gas trade patterns as the situation unfolds. The ramifications of this conflict extend beyond regional borders, highlighting the vulnerability of global energy supply chains amidst geopolitical tensions.