Oil Price Volatility Continues Amid Global Conflicts

The price of oil has experienced significant volatility in recent years, particularly since the start of this century. One notable event was the US-Iran war that began in February 2026, which saw Brent North Sea crude prices surge above $100 a barrel and reach a peak of $126.41 at the end of April.

However, hopes for de-escalation, weaker demand from China, and the massive release of countries' strategic oil reserves caused prices to fall back in June. The conflict has effectively blocked the Strait of Hormuz, through which almost 20% of the world's oil is transported.

In 2022, Russia's invasion of Ukraine pushed crude futures above $100 in February, with Brent reaching a record high of $139.13 and WTI $130.50 in March. Fears of insufficient oil supplies rose as Western sanctions against Russia followed, coupled with increased demand after the Covid-19 pandemic.

The pandemic itself had a significant impact on oil prices, with WTI briefly turning negative in 2020 due to scarce storage facilities and a Saudi-Russia price war. At the same time, Brent tanked to a record low of $15.98.