Due to the ongoing war between America, Israel and Iran, there has been a huge jump of about 30 percent in the prices of crude oil. Due to this tension, a big fall was recorded in Asian stock markets on Monday. The price of crude oil has crossed $100 for the first time since 2022. This is also having a direct impact on the oil production and export of Gulf countries like Kuwait, UAE and Bahrain.
Latest status of crude oil and stock market
There has been a huge increase of 28 to 30 percent in the prices of both West Texas Intermediate (WTI) and Brent crude. Their price has reached around 118 to 119 dollars per barrel. There is a lot of panic among investors due to this sudden jump in oil prices. There was heavy selling in Asian stock markets on Monday 9 March, the figures of which are as follows:
Country (stock index) Decline South Korea (Kospi) 8% (trading halted 20 minutes) Japan (Nikkei 225) 7% Taiwan (Taipei) 5% Australia (S&P/ASX 200) 4% Hong Kong (Hang Seng) 3 to 3.5%
What was the impact on Gulf countries and supplies?
The movement of oil tankers through the Strait of Hormuz has completely stopped. 20 percent of the total oil used worldwide passes through this route. This situation has arisen due to the fear of missile and drone attacks from Iran.
Production Cuts: Kuwait, Iraq and UAE have officially started reducing oil production. Due to stoppage of exports, their storage tanks are completely filled.
Attack in Bahrain: Bahraini company Bapco Energies has declared force majeure after Iran’s attack. His oil complex suffered huge damage in this attack.
New leadership in Iran: Iran has elected Mojtaba Khamenei as the new Supreme Leader. Market experts believe that this will further increase regional tensions.
Inflation and impact on common man’s pocket
International Monetary Fund (IMF) MD Kristalina Georgieva has warned that this war will bring new inflation across the world. Due to rising energy costs, the cost of everyday goods and shipping will increase rapidly. To deal with this crisis, G7 countries are considering releasing their emergency oil reserves.
South Korean President Lee Jae Myung has set a limit on fuel prices for the first time in 30 years to protect the public from panic. In America too, a huge increase in petrol prices has been seen within just a week. According to experts, this situation is like a big shock for the global economy.