Global oil price hits 4-year high on concerns Iran war could worsen

Global oil prices surged to a four-year high, exceeding US$122 a barrel on Thursday, driven by concerns regarding the potential escalation of the US-Iran war. This increase in oil prices is attributed to fears that a prolonged conflict could disrupt oil supplies from the Middle East, which may negatively impact global economic growth. The market reacted to reports from Axios, which cited unidentified sources indicating that US President Donald Trump was scheduled to receive a briefing on military strike plans against Iran. These strikes are intended to pressure Iran into returning to negotiations. In addition to the rise above US$122, other reports noted that crude oil prices had also jumped above US$117, reflecting the volatility in the market due to ongoing uncertainty surrounding the conflict in the Middle East. The situation remains fluid, with the potential for further price fluctuations as developments unfold. The heightened tensions and military considerations are contributing to a climate of uncertainty that is influencing oil market dynamics. The implications of these rising oil prices extend beyond immediate market reactions, as they could signal broader economic challenges if the conflict escalates. The potential for a disruption in oil supply from a key region like the Middle East raises alarms about the stability of global energy markets and the overall economic outlook.