Oil prices surge nearly 4% amid rising West Asia tensions

New Delhi, March 16: Global oil prices rose on Monday after the United States launched strikes on military assets on Kharg Island over the weekend, escalating tensions in the Persian Gulf as the conflict entered its third week.

At around 9:45 am, Crude oil futures -- specifically the US benchmark West Texas Intermediate (WTI) -- surged by 3.77 per cent to $102.44, while Brent crude -- the international benchmark -- traded at $104.79, up 1.59 per cent from the previous close.

The surge in oil prices followed retaliatory attacks by Iran on Israel and several Arab states after US strikes targeted military facilities on Kharg Island, which handles the bulk of Iran’s crude shipments.

US President Donald Trump warned that Iran’s energy infrastructure on the island -- responsible for roughly 90 per cent of the country’s oil exports -- could face further attacks if Tehran disrupts shipping through the Strait of Hormuz.

Trump said he was “demanding” that other nations help secure the key maritime passage that connects the oil and gas supplies of the Persian Gulf to global markets.

Washington has reportedly urged major oil-importing partners such as China and Japan to deploy naval vessels to the Strait to ensure the safe movement of tankers. Around one-fifth of global oil shipments and significant volumes of seaborne liquefied natural gas pass through the waterway.

The US has also ordered the Navy’s Fifth Fleet to escort commercial vessels in the region in an effort to deter potential Iranian attacks.

The strike on Kharg Island marks a further escalation in the conflict, which, according to the International Energy Agency (IEA), has already triggered the largest supply disruption in the history of the global oil market. Shipping traffic through the Strait of Hormuz has largely stalled since hostilities intensified.

Meanwhile, the United Arab Emirates resumed loading operations at the key export hub of Port of Fujairah on Sunday, a day after a drone strike temporarily halted shipments from the country’s primary export route while the strait remained blocked.

Brent crude surged about 11 per cent last week, touching a high of $119.50 per barrel -- levels last seen following Russia’s invasion of Ukraine -- before settling just above $103 per barrel.

--IANS