On Friday, oil prices spiked significantly, nearing US$ 90 amid growing concerns in the market about potential disruptions in supply due to conflicts in the Middle East that have been ongoing for over a week. The Brent crude oil prices, a global benchmark, reached US$ 89.49, marking its highest level since April 26, 2024, and rising by 4.7% compared to the previous day's closing price. Meanwhile, the West Texas Intermediate (WTI), a key marker for US oil, climbed even higher, increasing by approximately 6.5% to reach US$ 86.57 shortly after the market opened.

The remarkable increase in oil prices over the past two days is closely tied to heightened investor anxiety regarding supply stability, particularly as oil tankers have been unable to pass through the Strait of Hormuz. This strait is critical for global energy transport, facilitating the movement of 20% of the world’s oil production. With vessels currently anchored in Persian Gulf ports, major shipping companies are refraining from operating in the region, which is intensifying the supply concerns in an already volatile market environment.

The surge in oil prices has also influenced broader market reactions, leading to declines in European and US stock markets, as investors respond to the implications of higher energy costs on economic activity. This scenario underscores the interconnectedness of geopolitical events and global oil markets, emphasizing the potential for continued volatility in financial markets as the situation in the Middle East evolves further. Investors will be closely monitoring developments to gauge potential impacts on oil supply and prices going forward.