Global Oil Prices May Surge Further Amid Ongoing Conflicts
Oil prices may continue to rise due to ongoing disruptions in the global oil market. The conflict in Iran has caused a significant decrease in oil shipments through the Strait of Hormuz, leading to increased prices from $65 a barrel before the conflict began in February 2026 to over $100 a barrel by mid-September.
The US and Israel's attack on Iran initially raised concerns that oil prices would reach $150 or even $200 a barrel. However, this has not yet happened. Despite efforts to curb demand and boost supply, the global oil market is largely exhausted of its safety measures, leaving prices vulnerable to further increases.
The closure of the East-West pipeline in Saudi Arabia due to attacks on September 15th forced the Saudis to halt oil shipments through the pipeline, tightening already constrained oil markets. The threat of further Houthi attacks on Red Sea oil exports will add to inflationary pressures.