Global crude oil prices surged on Friday following US President Donald Trump’s warning of potential military action against Iran within two to three weeks, raising concerns about supply disruptions in the West Asia region. Brent crude futures reached $109.24 per barrel, marking an 8% increase, while US West Texas Intermediate (WTI) futures stood at $111.54 per barrel by 3:39 am (local time).
US WTI futures saw an 11.94% rise from the previous week’s close, whereas Brent crude experienced a 3.14% decline over the same period. The ongoing conflict in West Asia, now in its fifth week, has led to a significant reduction in global oil supply, driving energy prices to multi-year highs and causing fuel shortages in countries reliant on the Strait of Hormuz for oil shipments.
President Trump’s recent remarks promising a severe response to Iran in the coming weeks have raised concerns. However, he did not outline a specific plan to reopen the strait, suggesting that other nations should take the lead in ensuring its safe passage for shipping traffic.
Analysts warn that any further escalation in the West Asia conflict could keep crude prices, the Indian rupee, and foreign institutional investments in emerging markets under pressure. They suggest that signs of de-escalation in the region may lead to softer crude prices and currency stability, while prolonged tensions could sustain risk aversion and impact foreign investments.
