Middle East Conflict Sends Oil Prices Soaring to Highest Level Since Mid-2022

Oil prices surged to their highest level since mid-2022 on Monday as tensions in the Middle East escalated. Brent crude futures reached a high of $119.50 per barrel, while US West Texas Intermediate (WTI) crude futures hit $119.48.

The price jump was triggered by fears of prolonged shipping disruptions due to the expanding US-Israeli war with Iran, which has shut down key oil export routes. Iraq and Kuwait have also cut their oil output in response to the crisis.

Analysts expect OPEC heavyweights United Arab Emirates and Saudi Arabia to follow suit and reduce production as they run out of storage capacity. The Strait of Hormuz, a critical shipping route for global oil supplies, is virtually shut down due to the conflict.