Analysis: US crude oil futures break $85 for the first time in nearly two years, disrupting the global energy "lifeline".

US crude oil futures broke through $85 a barrel for the first time in nearly two years, with the Middle East war triggering severe turmoil in the energy market and shipping in the Strait of Hormuz almost completely halted. With no signs of abating, Goldman Sachs warned that oil prices risk breaking $100 if supply disruptions continue; European diesel futures rose by more than 50% in a single week; and central banks around the world expressed unease about a possible resurgence of inflation. Qatar's energy minister even warned that oil prices could reach $150. Faced with importers' difficulties in obtaining crude oil, the US Treasury Department's Office of Foreign Assets Control issued a short-term exemption, allowing India to purchase Russian crude oil. As the escalating conflict restricted Middle East supplies, Saudi Arabia raised its April prices for its main crude oil products sold to Asia by the largest margin since August 2022. Riyadh is also diverting millions of barrels of crude oil to its Red Sea ports to bypass the Strait of Hormuz. (Jinshi)