Crude oil prices have continued to climb on global markets, primarily driven by the ongoing military conflicts in the Middle East. The disruption of oil transportation through the Strait of Hormuz has triggered the sharpest increase in oil prices since the beginning of the decade. The Strait of Hormuz is located near key oil-producing countries such as Saudi Arabia, Iran, Iraq, Oman, and the United Arab Emirates, with the strait serving as a critical passage for approximately one-fifth of the world's oil supply.

This week, futures prices for Brent crude have surged by 24 percent, marking the steepest rise since the early days of the COVID-19 pandemic in May 2020. As of Friday afternoon, Brent crude was up by 5.4 percent to $90 per barrel, while West Texas Intermediate (WTI) saw an 8 percent increase to $87.46 per barrel. These soaring prices point to market volatility influenced by geopolitical tensions and the potential for reduced oil exports from the Gulf countries.

Qatari Energy Minister Saad al-Kaabi expressed an urgent warning to the Financial Times, indicating that if the Strait of Hormuz remains closed, Gulf oil-producing countries might halt exports within weeks. This scenario raises significant concerns in the global oil market, as the economic repercussions could be widespread, affecting prices and availability across various economies dependent on oil imports.