Ongoing tensions in the Strait of Hormuz and the broader Middle East conflict have triggered a significant rise in global market prices. The price surge has now affected not only oil and gas but also a wide range of consumer goods.
Market participants report price increases in aluminium, steel, ammonia, rice, dates, and various types of nuts. Experts attribute this to disruptions in global supply chains.
According to estimates, disruptions in trade and economic operations across Middle Eastern countries have caused nearly $700 billion in damage to the global economy. Since the start of the conflict, oil prices have risen by 65%, triggering a chain of inflation across transport, logistics, trade, and service sectors.
A report by Allianz Research notes that Brent and WTI crude prices have already exceeded the $100 per barrel level. In the United States, the number of active drilling rigs has declined, although the country is still considered among the least affected by the crisis.
Experts say the European Union is experiencing the most severe impact. Amid the Russia–Ukraine war, rising energy prices have further intensified economic pressure in Europe.
A World Bank forecast suggests that average oil prices may remain around $86 per barrel in the near term. However, some analysts believe that even after the conflict ends, oil prices may not fall below $100, as restoring energy infrastructure in the Middle East will take considerable time.
Analyst Navina Dassa from Kpler stated that even if hostilities in the Middle East cease, rebuilding energy infrastructure will be a lengthy process, meaning elevated prices are likely to persist.
