Global energy markets experienced major volatility after concerns over the closure of the Strait of Hormuz and attacks on oil facilities triggered a sharp rise in crude oil prices. Within a single trading day, global oil prices surged by nearly 30 percent, raising fears of a new energy crisis.
During Monday’s trading session, Brent Crude Oil jumped by $21.25, reaching $119.50 per barrel, while West Texas Intermediate (WTI) rose by $21 to $119.48 per barrel. Analysts say the spike was largely driven by supply concerns as the crucial shipping route in the Gulf remained blocked, preventing oil and gas shipments from reaching international markets.
According to reports, nearly one-fifth of the world’s oil supply normally passes through the Strait of Hormuz each day. The disruption has therefore raised serious concerns among traders and energy companies worldwide.
However, prices began to ease after signals from the Group of Seven nations that emergency oil reserves could be released to stabilize the market. Finance ministers from G7 countries held a virtual meeting chaired by France to discuss possible measures.
Officials also confirmed that the International Energy Agency and its member countries collectively hold over 1.2 billion barrels of emergency oil reserves, which could be used if the crisis continues.
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