International oil prices have seen a significant rise, with crude oil reaching over $90 per barrel for the first time since September 2023. The spike is attributed to a blockade of the Hormuz Strait following military actions by the U.S. and Israel against Iran, which has disrupted oil transportation. The April futures for West Texas Intermediate (WTI) crude ended trading at $90.90, marking a 12.21% increase. Similarly, Brent crude also saw an increase, finishing at $92.69, the largest daily jump since March 2022.

In response to the escalating conflict in the Middle East and the blockade of the Hormuz Strait, oil-producing nations are beginning to enforce production cuts. Reports emerged that Kuwait has started reducing output due to dwindling storage capacity, while Iraq has already cut its daily oil production by 1.5 million barrels. This reduction in supply is causing concern as international oil prices continue to rise, leading to fears of increased inflation rates globally. The recent weekly increase of WTI prices has reached 35.63%, marking the highest percentage increase since 1983.

The implications of these rising oil prices could have far-reaching effects on the global economy. Adverse projections indicate that if the blockade of the Hormuz Strait persists for two to three weeks, oil prices might escalate to $150 per barrel. Such a rise could potentially wreak havoc on the world economy, as warned by Qatar's Energy Minister, Saad al-Kaabi, in a recent interview. The ongoing situation emphasizes the geopolitical instability in the region and its tangible impact on global fuel markets.