Iran Accuses US of Preparing Invasion Amid Rising Oil Prices

Global Oil Prices Reach New High Amid Escalating US-Israel War on Iran

Oil prices have surged to their highest level in nearly two weeks, with Brent crude reaching $116 a barrel, according to market data. The latest increase follows a warning from Iranian parliament speaker that Tehran is prepared for a US ground invasion and will “punish” regional allies.

The conflict has deepened over the weekend, with Iranian-backed Houthis launching missiles at Israel for the first time in the war, and Israel expanding its invasion of southern Lebanon. In response, Iran has effectively closed the Strait of Hormuz, disrupting about one-fifth of global oil and liquified natural gas supplies.

As a result, numerous countries have adopted emergency measures to conserve energy, with fuel prices worldwide rising nearly 60 percent since the start of the war. Analysts predict that oil prices will continue to rise unless maritime traffic returns to normal levels in the strait.

US President Donald Trump has threatened to “obliterate” Iran’s energy infrastructure if Tehran does not relinquish its control over the waterway by April 6. Iranian officials have rejected Trump’s plan and proposed their own terms for a ceasefire, including war reparations and recognition of their right to control the strait.

Industry experts note that energy consumers are only beginning to feel the full impact of the turmoil, with physical oil moves around the world taking several weeks to manifest in prices. The scale of the disruption has yet to be fully appreciated, with physical premiums reaching record highs.

As of Monday morning, Asia’s main stock indexes fell sharply, with Japan’s Nikkei 225 and South Korea’s KOSPI both down more than 4 percent.

Source: Al Jazeera