Oil prices surged above $100 per barrel for the first time in more than three and a half years as the war involving Iran disrupted energy production and shipping across the Middle East. Brent crude rose to just over $101 per barrel, while West Texas Intermediate climbed above $107, extending sharp gains from the previous week amid escalating supply concerns.

Fighting has threatened key energy infrastructure and severely limited tanker traffic through the Strait of Hormuz, a crucial passageway that carries about one fifth of the world’s daily oil supply. Missile and drone threats have largely halted shipments, while several countries in the region have reduced production as storage facilities fill and export routes remain constrained.

Strikes on oil depots, storage tanks and transfer terminals have intensified fears of prolonged disruption. Iran, which exports roughly 1.6 million barrels of oil per day, faces potential export challenges that could further tighten global supply, particularly for major buyers such as China.

The rapid rise in crude prices has pushed gasoline and diesel costs higher and unsettled financial markets. Analysts warn that sustained prices above $100 per barrel could increase inflationary pressures and slow consumer spending, posing risks to the global economy.