Oil prices approach 4-year high as Iran conflict stymies shipping

Saudi Arabia, the UAE, Qatar and other energy producers are raising prices to the highest levels since 2022 as the expanding conflict with Iran rattles global energy markets and disrupts shipping routes in the Gulf.

Brent crude surged during trading to around $119 a barrel, its highest level since mid-2022, amid growing fears that supplies from the Middle East could be cut off.

Natural-gas markets are also tightening as producers halt operations and traders scramble to secure alternative supplies.

The war could leave consumers and businesses worldwide facing months of higher fuel prices even if the conflict ends quickly, as suppliers grapple with damaged facilities, disrupted logistics and elevated risks to shipping, Reuters reports.

The U.S., France and other major consuming countries are discussing releasing strategic reserves while energy companies reassess shipments as the Strait of Hormuz – a key route for global oil and LNG – is effectively shut to normal traffic.

The turmoil is already spreading across global markets, forcing airlines, shipping firms and manufacturers to prepare for prolonged energy disruptions.