Talking Notes

Oil Prices Surge Amid Ongoing Iran Conflict

After three weeks of conflict involving Iran, global crude oil prices have been climbing at an unprecedented pace. Brent crude has soared by 60%, while the US WTI benchmark has increased by over 50%. For countries relying on Persian Gulf oil—excluding China and India—supplies have become extremely scarce. This oil crisis has already surpassed the shocks caused by Russia’s invasion of Ukraine and last year’s brief conflict with Iran. In fact, aside from the unique situation during the Covid pandemic when prices turned negative, the last comparable surge in oil prices occurred during Iraq’s invasion of Kuwait in 1990.