🛢️ Global Oil Prices Surge Past $110 Amid Iran-US Tensions

Global energy markets experienced high volatility yesterday as Brent crude briefly topped US$ 110 per barrel following renewed geopolitical friction in the Middle East. • Market Impact: Prices surged after US President Donald Trump threatened to target Iranian infrastructure, including power plants and bridges, if shipping through the Strait of Hormuz is not restored by late Tuesday. • Supply Disruptions: The Strait of Hormuz, a critical energy corridor, remains disrupted following Iranian threats to vessels. This follows a series of US and Israeli airstrikes initiated on 28 February. • Price Correction: Gains were partially pared later in the session following reports of a potential 45-day ceasefire negotiation involving the US, Iran, and regional mediators. • Current Status: Despite ceasefire rumors, a White House official confirmed that military operations under "Operation Epic Fury" continue. Markets remain sensitive to supply uncertainty and geopolitical signals. 📉 Economic Note: For Sri Lanka, sustained oil prices above $110 pose significant risks to the trade deficit and domestic energy costs, particularly for the transportation and manufacturing sectors.