Oil Price Surge Sparks Fears of Global Economic Shock

Oil prices are rising sharply amid escalating conflict between Israel and Iran, raising alarm among economists about a new “adverse shock” to an already fragile global economy.

Brent crude has risen again this morning, climbing to $74.60 a barrel, after a 7% jump on Friday. The spike follows reported Israeli strikes on Iranian gas infrastructure, and growing fears that the Strait of Hormuz—a vital trade route for 20% of global oil and LNG—could be disrupted.

Iran provides around 3% of global oil supply.

💬 Economist Mohamed El-Erian warned that the conflict may bring slower global growth, higher inflation, less room for central banks to manoeuvre, and further erosion of global stability.

Markets remain volatile, but US and Asian stocks have edged up slightly, with investors noting that Israel has so far avoided hitting Iran’s oil export facilities directly.