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Report by Emmanuel Garjiek
Global oil prices rose sharply on Monday as tensions escalated in the Middle East, raising concerns over fuel supply disruptions that could impact economies worldwide, including South Sudan.
Brent crude oil, the global benchmark, jumped by about 10 percent to above $82 per barrel following reported attacks on vessels near the Strait of Hormuz, a critical shipping route through which nearly one-fifth of the world’s oil and gas supplies pass.
Authorities in Iran warned commercial vessels against transiting the strait, triggering a slowdown in international shipping and forcing many oil tankers to anchor in the Gulf. Analysts warned that a prolonged closure could further push up global energy prices.
Natural gas prices also surged by up to 25 percent, while major stock markets in Europe recorded losses as investors reacted to fears of higher inflation and reduced interest rate cuts by central banks.
The disruptions have raised concerns for fuel-importing countries such as South Sudan, where rising global oil prices often translate into higher fuel and transport costs, increasing pressure on household budgets and local businesses.
In Europe, airline and banking stocks were among the hardest hit, while gold prices climbed as investors sought safe-haven assets. Meanwhile, international shipping near the Gulf of Oman and Arabian Gulf has slowed significantly due to security concerns.
The UK Maritime Trade Operations reported multiple security incidents involving commercial vessels, advising ships to transit with caution. Ship-tracking data shows more than 150 oil tankers currently anchored outside the Strait of Hormuz due to heightened risks and rising insurance costs.
On Sunday, the OPEC+ announced plans to increase oil production by 206,000 barrels per day in an effort to stabilize markets. However, energy experts cautioned that the additional supply may not be sufficient if the conflict continues.
Economists warned that sustained high oil prices could fuel global inflation, potentially slowing economic recovery and affecting developing economies that rely heavily on fuel imports.
In a related development, global shipping giant Maersk said it would suspend sailings through key Middle Eastern waterways and reroute vessels around Africa, a move expected to further increase shipping costs and delivery times.
Analysts say global markets will closely monitor developments in the region, particularly whether shipping through the Strait of Hormuz resumes, as any prolonged disruption could lead to a wider economic fallout felt far beyond the Middle East.
