London – Web Desk: Global oil prices surged more than 3% following renewed US airstrikes on Iran, as concerns over potential disruption to shipping through the strategic Strait of Hormuz intensified among investors .
Brent crude futures rose by $2.67 (3.5%) to $78.68 per barrel at 8:45am PKT, while US West Texas Intermediate crude climbed $2.58 (3.5%) to $75.80 per barrel .
Supply Disruption Fears
The price spike reflects growing investor anxiety that escalating military tensions in the Gulf could disrupt oil shipments through the Strait of Hormuz, the world’s most critical maritime chokepoint . According to the US Energy Information Administration, approximately 20% of globally traded crude oil passes through the strait, making its security vital to energy markets worldwide .
The latest escalation follows the collapse of the June ceasefire between Washington and Tehran, with the US launching further military operations to protect commercial shipping in the strait . Earlier, Brent crude had settled at **$74.42 per barrel** on Friday, down from a two-week high of $76.44 reached earlier last week, before the latest surge .
Oil at Risk of ‘Stagflation’ Impact
Analysts at the Institute of International Finance warned that a lasting conflict could reduce global GDP by 1 percentage point in the first year alone, while pushing oil prices to $85-$90 per barrel and causing 5-10% persistent inflation . An immediate supply shock, combined with heightened risk premiums, would likely push oil prices above $100 per barrel .
South Africa’s central bank governor warned that the conflict is already causing “stagflation” symptoms in the global economy—a toxic combination of slowing growth and rising inflation, driven by high energy costs and disrupted supply chains .
Further Price Rises Expected
Analysts anticipate continued volatility in crude oil prices, with Brent crude forecast to reach $85-$90 per barrel over the next month . Inflationary pressures could be further exacerbated by supply chain disruptions as cargo vessels divert away from the region .
