Oil prices surged on Monday amid concerns stemming from the conflict in Iran, with U.S. crude rising about 7% to around $97 a barrel and Brent crude up 6% to over $100 per barrel. Prices have increased nearly 70% since the start of the year, with retail gasoline in the U.S. averaging $3.47 per gallon—up significantly since the war began.
The rapid increase in oil prices has impacted stock markets, leading to declines in major indexes like the S&P 500 and the Nikkei, which fell 5.2%. Global bond yields also rose in response, with the 10-year U.S. government bond reaching 4.17%.
Finance ministers from leading developed nations held a discussion about potentially releasing oil reserves to stabilize prices but decided against immediate action. European Union officials plan further talks on the topic.
The conflict has led to production cuts from several oil-producing countries, including Kuwait and the UAE, while tankers face threats in the Strait of Hormuz, a critical shipping route. Analysts warn that if disruptions continue, severe supply shortages could arise in the near future, and further production cuts may be needed. The UAE may also be on the verge of halting production.
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