Blitz Bureau
NEW DELHI: Global crude oil prices registered a surge to as $110 per barrel as the hostilities between the US and Iran resumed, according to a report.
According to analysis by Oslo-headquartered energy research and intelligence firm Rystad Energy, the latest escalation between the US and Iran has pushed the April ceasefire to its most difficult moment so far, triggering a rise in oil prices and a decline in financial markets, including US equities.
According to the report, as much as 11.8 million barrels per day (bpd) of oil production remains shut in across six Gulf producers, making the conflict the most significant supply disruption seen in modern energy markets.
“At this stage, it is too early to say whether the current escalation marks a full resumption of hostilities or a dangerous but still containable episode,” said Jorge Leon, Senior Vice President and Head of Geopolitical Analysis at Rystad Energy.
He noted that uncertainty surrounding the conflict was reflected in oil price movements, with Brent front-month crude rising sharply to around $94.5 per barrel before easing back towards $93 per barrel.
Leon said the immediate impact of the disruption could be moderated by record releases from strategic petroleum reserves, lower crude imports by China and the continued movement of around 5 million bpd of crude through Saudi Arabia’s Yanbu export route, bypassing the Strait of Hormuz.
