New Delhi: Crude oil prices rose again on Monday, April 6, as tensions between the US, Israel, and Iran increased. This conflict is affecting oil supply from West Asia, which is one of the world’s biggest oil-producing regions. Any disruption here quickly impacts global prices.
Current Price Levels
In the international market, Brent crude prices jumped 1.6% to cross USD 110 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude was seen trading near USD 112 per barrel. Last week also saw a sharp rise, marking one of the biggest increases since 2020.
Can Prices Reach USD 150?
According to several reports, oil prices may see strong volatility in the coming months. Experts believe prices could even reach USD 150 per barrel, especially between April and May 2026, if the conflict worsens. However, prices may cool down in the second half of the year.
Key Reason: Strait of Hormuz Disruption
The biggest reason behind the surge is the ongoing conflict near the Strait of Hormuz. This narrow water route is very important as it carries oil from countries like Iraq, Saudi Arabia, Qatar, Kuwait, and the UAE. Due to tensions, ship movement has been affected, tightening global supply.
Trump’s Warning Adds Pressure
Former US President Donald Trump has increased pressure on Iran. He warned that if the Strait of Hormuz is not reopened soon, the US could target key Iranian infrastructure. This statement has added more uncertainty to the oil market.
Supply Concerns and Alternatives
Although some ships are allowed to pass, the situation is still not normal. Oil companies are now trying to buy crude from other regions like the US and the North Sea in the UK to manage supply risks.
What About OPEC+?
OPEC+ has decided to slightly increase production for May. However, experts believe many countries may struggle to raise output due to the ongoing conflict.
What It Means for the World
If tensions continue, oil prices may rise further. This could increase fuel costs and impact economies worldwide, affecting both businesses and consumers.
