Oil prices climb to $100 globally amid rising geopolitical tensions

Global oil prices have climbed sharply, with benchmark crude crossing $100 per barrel on Wednesday (May 27), as renewed geopolitical tensions between Iran and the United States reignite concerns over energy supply stability.

Market analysts say the escalation of tensions in the Middle East—particularly uncertainty surrounding the Strait of Hormuz—has intensified fears of potential supply disruptions, putting additional pressure on global oil markets.

The latest price rally follows a period of volatility. Earlier last month, heightened conflict and disruptions in oil transportation through the Strait had pushed crude prices above $126 per barrel. Prices later eased to around $97 for Brent crude amid hopes of diplomatic de-escalation.

However, with recent developments and renewed military tensions, those expectations have weakened, contributing to fresh upward pressure in the market.

According to energy research firm HFI Research, the oil market has entered a phase where a quick return to stability appears unlikely, given persistent supply-side risks.

Analysts also point to declining global inventories due to weeks of disrupted supply chains, alongside seasonal demand growth as the summer travel period approaches—factors expected to further tighten the market.

Source: The Guardian