Global Oil Prices Surge Past US$ 100 Amid Iran Conflict 📈

Global energy markets have been rattled as crude prices eclipsed the US$ 100 threshold for the first time in over three years, driven by escalating conflict in the Middle East. • Market Impact: Brent Crude: Surged 16.5% to US$ 107.97 per barrel. West Texas Intermediate (WTI): Rose 16.9% to US$ 106.22 per barrel. Natural Gas: Increased by 4.6% to US$ 3.33 per 1,000 cubic feet. • Supply Disruptions: The Strait of Hormuz, accounting for roughly 20% of global oil shipments (15 million barrels/day), faces a near-total halt in tanker traffic due to missile and drone threats. Major producers including Iraq, Kuwait, and the UAE have cut production as export capacities are throttled by the conflict. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, sustained prices above US$ 100/barrel pose significant risks to Sri Lanka's trade balance and domestic inflation. Rising energy costs typically impact the manufacturing and transportation sectors, potentially increasing the cost of production for key exports like tea and apparel. • Global Outlook: Financial markets remain volatile; S&P 500 and Dow futures are pointing toward a lower opening as investors weigh the impact of higher energy costs on global consumption and inflation.