Muscat: The sudden rise in prices has sparked concern in international markets as traders react to uncertainty over key shipping routes and potential damage to the region’s oil infrastructure. Analysts say the strategic Strait of Hormuz is a serious concern.
This narrow waterway is one of the world’s most important oil transportation routes, with nearly a fifth of the world’s oil supply passing through it each day. Any disruption to the Strait could have a significant impact on global supplies and lead to increased price volatility. Energy experts also warned that attacks on refineries, pipelines and export terminals in the region could worsen the situation and reduce oil production capacity.
Amid heightened geopolitical tensions, several shipping companies have already begun reviewing security procedures for ships transiting the Persian Gulf.
The rise in crude oil prices is expected to have ripple effects throughout the world economy. Rising fuel costs lead to higher transport, food and manufacturing costs, which can contribute to inflation in many countries.
Economists have warned that if the conflict continues and oil prices remain high, governments may need to introduce emergency measures such as releasing strategic oil reserves, providing fuel subsidies and adjusting energy policies to protect their economies from further shocks.
