Middle East Conflict Threatens Global Economy as Oil Prices Surge

The Middle East conflict has entered its seventh day, causing significant disruptions in energy shipping through the Strait of Hormuz. According to Ming Pao, Qatar has warned that the ongoing war in the region could negatively impact the global economy. If oil tankers and other commercial vessels continue to be unable to pass through the Strait, all energy-exporting countries in the Persian Gulf may halt production within weeks. This situation could drive oil prices up to $150 per barrel within two to three weeks, while natural gas prices might rise to nearly four times their pre-war levels. Amid the escalating tensions in the Middle East, international oil prices have surged. Brent crude oil prices have surpassed $90 per barrel, while New York crude oil prices have exceeded $88 per barrel, with the latter experiencing a daily increase of nearly 9%. Both Brent and U.S. crude oil prices have reached their highest levels since April 2024.