Rabat – Oil markets opened the week under pressure after US and Israeli strikes on Iran, followed by Iranian missile attacks on Israeli and US military facilities across the Middle East, raised fears of a wider regional confrontation.
West Texas Intermediate, the US benchmark, climbed to $72.79 per barrel early Monday. The price stood near $67 on Friday.
Brent crude, the global reference, reached $79.41 per barrel, up from $72.87 at the end of last week. The jump pushed Brent to its highest level in seven months.
The sharp move shows concern over supply from Iran and other producers in the Gulf.
US President Donald Trump signaled that operations could continue until US objectives are met, a message that reinforced expectations of prolonged tension.
At the center of market anxiety lies the Strait of Hormuz. Around one fifth of the world’s seaborne oil passes through the narrow corridor.
Tankers carry crude and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
Although the strait remains open, vessel tracking data shows ships clustered on both sides.
Some operators fear attack, while others struggle to secure insurance. Two vessels that crossed the strait on Sunday came under attack.
A disruption at Hormuz would have immediate consequences. About 15 million barrels per day move through the passage. Any slowdown would tighten global supply and push prices higher. Even the perception of risk has already lifted markets.
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Iran exports roughly 1.6 million barrels of oil per day, most of it to China. If those flows face interruption, Beijing may seek alternative suppliers, which could add further strain to global balances.
The shock reached equity markets within hours. Japan’s Nikkei index fell 1.3 percent. MSCI’s broad Asia-Pacific index outside Japan lost 1.2%. Chinese blue-chip shares slipped 0.1%.
In Europe, futures for the EURO STOXX 50 dropped 1.3% and Germany’s DAX fell 1.4%. FTSE futures declined 0.6%. In the US, S&P 500 and Nasdaq futures each retreated 0.8%.
In the Gulf, the United Arab Emirates and Kuwait suspended stock market activity, citing exceptional circumstances.
Consumers may soon feel the impact. Higher crude prices often translate into more expensive fuel and transport costs, which in turn affect food and other basic goods. Many households already face pressure from inflation.
In a separate development, eight OPEC+ members, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, confirmed plans to raise output by 206,000 barrels per day in April.
The decision had been scheduled before the current escalation. The increase may offer some relief, but it may not offset the shock if tension intensifies.
