Singapore — Global oil prices have climbed back above $100 per barrel as escalating tensions in the Middle East, particularly the ongoing U.S.-Iran conflict, fuel concerns over supply disruptions in one of the world’s most critical energy corridors.

Brent crude futures rose to around $105 this week, while West Texas Intermediate (WTI) crossed the $90 mark, marking one of the sharpest rebounds since fighting began in late February. Analysts attribute the surge to heightened risks in the Strait of Hormuz, where about 20 percent of global oil shipments pass.

Iran has seized vessels and threatened shipping lanes, while the United States has maintained a naval blockade to restrict Iranian oil exports. The standoff has rattled markets, with traders pricing in the possibility of prolonged supply shortages.

“We are slightly in limbo because the geopolitical story could take a significant turn at fairly short notice,” said Kit Juckes of Société Générale.

The spike in oil prices is already feeding into global inflation. Britain reported inflation rising to 3.3 percent in March, while fuel-dependent Asian economies are bracing for higher import costs. Economists warn that if the conflict drags on, central banks may be forced to delay planned interest rate cuts, prolonging economic strain.

Stock markets across Europe and Asia dipped on fears of higher energy costs, while Wall Street showed resilience with modest gains. Energy companies, however, saw sharp increases in share prices as investors sought safe havens amid the turmoil.

With ceasefire talks between Washington and Tehran repeatedly stalling, analysts expect oil prices to remain volatile, swinging between $95 and $115 depending on developments in the Gulf. If the blockade persists and Iran escalates attacks, prices could retest the $120 peak seen in March.

For consumers worldwide, the return of triple-digit oil prices means higher fuel costs, rising inflation, and continued economic uncertainty until a durable ceasefire is reached.