Oil prices surged above $100 a barrel following a recent U.S. attack on Iran, raising concerns about the ongoing conflict in the Middle East and its repercussions on global energy markets. Brent crude reached over $126 a barrel last month, but prices had dipped to around $97 recently as traders anticipated a potential diplomatic resolution.
Experts indicate that significant disruptions in oil exports have depleted global inventories, and with rising demand during the summer travel season, the market may now be at a “point of no return.” Analysts predict a “rude awakening” could occur soon, as the International Energy Agency suggests that demand may outpace production significantly in the coming months.
While oil prices temporarily fell to $95.95 on optimistic reports of a potential peace deal, concerns about ongoing supply issues persisted. Saudi Aramco warned that if the Strait of Hormuz remains closed, oil supply problems could extend into next year. Although emergency reserves have provided some support, their depleting levels add to market uncertainty.
In Europe, gas reserves are also tight, suggesting potential price volatility ahead. In the UK, rising oil prices have led to the highest petrol costs since the onset of the conflict, with averages at 159.43p per liter, translating to increased household expenses.
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