Dhaka, Mar 09 (V7N) – The ongoing war between Iran, the United States, and Israel is causing a severe shock to the global economy, with international oil prices jumping sharply on Monday (March 9).

Trading in Asian markets saw oil prices exceed $100 per barrel, with Brent crude futures rising by $18.35 (19.8%) to $111.04, and US West Texas Intermediate (WTI) crude increasing by $16.50 (18.2%) to $107.40. According to oilprice.com, prices have surged further to $115 per barrel.

The surge comes amid production cuts by major Middle Eastern oil producers and a near halt in transportation through the Strait of Hormuz, a key route for global oil and gas supplies.

An official at Basra Oil Company in Iraq reported that due to export disruptions, oil production has been reduced by 70 percent to 1.3 million barrels. Qatar has also curtailed its liquefied natural gas (LNG) supply, while Iraq and Kuwait have cut oil output.

Bruce Kassman, chief economist at JP Morgan, warned that global dependence on Middle Eastern oil makes the market highly sensitive. He projected that oil prices could rise to around $120 per barrel if the conflict continues, but may decrease slightly if hostilities subside quickly.

Analysts caution that if the war persists, oil prices could potentially double, further straining the global economy.
END/SMA/AJ