ISLAMABAD – A dramatic escalation of war in Middle East triggered global energy shock, pushing oil prices above $100 per barrel for the first time in nearly four years and rattling financial markets around the world.
The surge comes amid intensifying military strikes involving US and Israel against Iran, raising fears that one of the world’s most critical energy supply routes could remain blocked for weeks. Brent crude surged past $110 per barrel, while U.S. crude also jumped sharply, signaling deep anxiety among traders about a possible disruption in global energy supplies.
Global Oil Prices
| Item | Price / Value |
| Brent Crude | ~$108–$110 per barrel |
| West Texas Intermediate (WTI) | ~$108.72 per barrel |
| Global crude prices | — |
| Global crude | ~$60 → ~$100+ |
| Average regular gasoline | $3.45 per gallon |
The impact was immediate and severe across global markets. Stock markets in Japan and South Korea plunged roughly 6 percent during trading as investors reacted to the escalating crisis. In the United States, futures tied to the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average dropped around 1.5 percent Sunday evening, indicating turbulence ahead when markets open.
At the heart of the crisis lies the Strait of Hormuz, a narrow but strategically vital waterway along Iran’s southern coast. The strait serves as one of the most important energy corridors on the planet, carrying roughly one-fifth of the world’s daily oil supply along with massive shipments of liquefied natural gas. For more than a week, the route has effectively been shut down, halting the movement of hundreds of oil tankers attempting to transport fuel from the Persian Gulf to global markets.
Natural gas markets are also reacting. Prices have climbed significantly across Europe and Asia, regions that depend heavily on imported energy supplies from the Middle East. Although the United States, the world’s largest natural gas producer, is somewhat protected from the worst of the disruption, domestic gas prices have still increased roughly 17 percent since the outbreak of hostilities.
Beyond energy markets, the surge in oil prices is fueling fears of rising inflation and economic instability. Investors now expect inflation to reach around 4.5 percent over the next year, a sharp jump from about 2.3 percent earlier in the year. As inflation expectations rise, government bond yields have also increased, driving up borrowing costs across the global economy.
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