Iran Conflict Drives Oil Prices Past $90, Threatening Global Inflation Surge
The escalating tension between Iran and global powers has pushed oil prices to their highest levels since the COVID-19 pandemic, posing a serious threat to the global economy.
The ongoing conflict between Iran and the international community has led to a dramatic surge in global oil prices, with the cost of a barrel of Brent crude reaching as high as $91.89 on Friday - its highest level since April 2024. This sharp increase, driven in part by reports that Kuwait has begun cutting oil production at certain fields due to storage capacity constraints, represents the largest weekly gain in oil prices since the start of the COVID-19 pandemic six years ago.
The soaring cost of crude oil is now poised to exacerbate the already high levels of global inflation, as the increased energy prices filter through to consumer goods and services around the world. The Iran conflict has effectively erased the relative stability and price moderation that had been observed in the oil market in the years following the pandemic-induced collapse in demand.
Source: The Guardian
