West Texas Intermediate crude oil surges 12% due to geopolitical risks... The price per barrel breaks through $150, entering a countdown

Recently, the price of West Texas Intermediate (WTI) crude oil in the New York market surged over 12 in a single day, breaking through $90 per barrel. This rapid increase was driven by escalating geopolitical tensions and concerns over Middle Eastern oil supply disruptions, prompting investors to react quickly to the soaring prices.

Qatar’s energy minister warned that if the Strait of Hormuz were blocked, oil prices could spike to $150 per barrel in the short term. This statement highlights the importance of the Strait of Hormuz as a major oil transportation route. If shipments through the strait are halted, the global oil supply chain would face serious threats.

Currently, Middle Eastern oil-producing countries are taking measures to suspend or cut back some oil production due to sharply rising geopolitical risks. Kuwait has begun reducing output as its storage capacity becomes saturated, and Iraq has cut daily production by 1.5 million barrels. These developments are adding additional pressure on oil prices to rise.

While the U.S. has laid the groundwork to ensure the security of the Strait of Hormuz, it is not enough to ease overall market anxiety. Especially given the ongoing conflict between the U.S. and Iran, a lasting solution seems unlikely. Therefore, despite measures like escorting oil tankers, the market continues to show unstable reactions.

If oil prices remain high or continue to rise in the future, it is expected to have a significant negative impact on the global economy. Industries that rely on oil may face increased costs. Experts believe that unless governments actively work to mitigate geopolitical risks, global economic growth could suffer as a result.