Oil prices continued to rise on Monday amid the war between the United States and Iran, reaching their highest level since 2022, while natural gas prices also continued to surge.
The price of Brent crude increased by 15% to 103.54 US dollars per barrel, while the price of WTI crude oil also climbed by 15% to 107.35 dollars per barrel.
At the Title Transfer Facility (TTF) gas hub in the Netherlands, natural gas prices briefly rose by around 30% to 69.5 euros per megawatt-hour on Monday. However, prices have not yet reached the levels seen in 2022, when Russia launched its full-scale invasion of Ukraine.
The conflict between the United States and Iran has forced oil producers in the Middle East to significantly reduce supplies. Iraq and Kuwait have already begun cutting oil production,
while tanker traffic through the Strait of Hormuz—which handles about one-fifth of global crude oil shipments—has nearly come to a halt.
Analysts predict that United Arab Emirates and Saudi Arabia may soon also be forced to reduce oil output due to supply shortages.
Economists warn that consumers and businesses worldwide could face rising fuel prices for weeks or even months, even if the war ends quickly. Oil suppliers may struggle to fully restore operations due to damaged facilities, disrupted logistics networks, and increased risks associated with transporting energy commodities.
Read also: BNN IN FOCUS | What rising gas and fuel prices could mean for Latvia