Global oil prices have surged past $100 per barrel after Iranian attacks set several oil tankers on fire in the Gulf and the Strait of Hormuz, triggering fresh fears of major disruptions to international energy supplies.
The escalation in the conflict has rattled global markets, with Iran warning that the world should prepare for a sharp rise in oil prices if the confrontation continues.
In response, several major economies have begun releasing crude oil from their strategic reserves in an effort to stabilise the market and prevent supply shortages.
Amid the intensifying hostilities, the widening Israeli campaign against Iran-backed Hezbollah has forced hundreds of thousands of people to flee their homes in Lebanon, further aggravating the humanitarian situation in the region.
The ripple effects of the war are already being felt far beyond the Middle East. In India, the country’s $5 billion bottled water industry is facing potential price hikes as the conflict drives up production costs. Rising oil prices have increased the cost of polymer, a petroleum-based material widely used to manufacture plastic bottles.
Industry sources say the cost of bottle-making materials has risen by nearly 50 per cent per kilogram, while the price of plastic caps has more than doubled. The cost of packaging materials such as corrugated boxes, labels and adhesive tape has also climbed significantly, forcing manufacturers to raise prices for distributors ahead of the peak summer demand season.
Despite mounting concerns in the global market, US Energy Secretary Chris Wright said it is unlikely that oil prices will reach $200 per barrel, even if the conflict intensifies.
However, he acknowledged that the situation remains volatile.
Meanwhile, the war is already placing a heavy financial burden on Washington. Officials from the Trump administration estimate that the first six days of military operations against Iran have cost the United States at least $11.3 billion.
According to officials, around $5.6 billion worth of munitions were used during the first two days of strikes alone.
With the conflict showing no immediate signs of ending, analysts warn that prolonged instability in the Gulf could continue to disrupt energy markets and drive global prices higher.
