Oil prices surge past $115 as Middle East tensions escalate

Global oil markets have reacted sharply to escalating tensions in the Middle East, with benchmark crude prices climbing to their highest level in over a week following a series of retaliatory attacks on energy infrastructure.

Brent crude futures rose above $115 per barrel earlier on Thursday, driven by growing concerns over supply disruptions after Iran launched strikes targeting energy facilities across the region. The escalation comes in response to an earlier attack on the South Pars gas field, one of the world’s largest natural gas reserves.

The ripple effects have extended beyond oil markets. Natural gas prices have also jumped significantly, rising almost 30 per cent amid fears that prolonged instability could constrain supply routes and production capacity.

Market analysts warn that the situation could deteriorate further if the Strait of Hormuz — a critical chokepoint for global energy shipments — remains closed or restricted. The narrow waterway handles a substantial share of the world’s seaborne oil trade, making it highly sensitive to geopolitical disruptions.

Vandana Hari, founder of energy consultancy Vanda Insights, told Al Jazeera that regional crude benchmarks such as Oman and Dubai crude have already crossed the $150 per barrel threshold. She suggested that while Brent and West Texas Intermediate have not yet reached such levels, the possibility of prices approaching $200 can no longer be ruled out under current conditions.

“The trajectory of oil prices from here will depend almost entirely on how long the Strait of Hormuz remains disrupted,” she said.

Energy markets are now closely monitoring developments in the region, with traders weighing the risks of prolonged conflict against potential diplomatic efforts to stabilise supply. The continued volatility underscores the fragile balance between geopolitical events and global energy security.