Global crude oil prices have surged sharply, breaching the US$100 per\nbarrel level following supply disruptions from the Middle East caused by\nIran-related conflict that has resulted in the closure of the Strait of\nHormuz.<\/p>\n
During trading on Monday (9 March 2026), West Texas Intermediate\n(WTI) crude jumped 18.98%, or US$17.25, to US$108.15 per barrel.\nMeanwhile, global benchmark Brent crude rose 16.19%, or US$15.01, to\nUS$107.70 per barrel.<\/p>\n
This surge extends the rally in crude prices following the previous\nweek, when US crude was reported to have jumped approximately 35%,\ndescribed as the largest weekly increase in the history of futures\ntrading since 1983.<\/p>\n
The last time crude oil prices breached US$100 per barrel was\nfollowing Russia\u2019s invasion of Ukraine in 2022.<\/p>\n
The price increase has been driven by production cuts by major\nproducers in the Middle East, amid the continued closure of the Strait\nof Hormuz\u2014a vital global energy shipping route.<\/p>\n
Kuwait, the fifth-largest oil producer in OPEC, announced on Saturday\nthat it would cut oil production and refinery output as a precautionary\nmeasure following Iranian threats to the security of vessels transiting\nthe Strait of Hormuz. However, Kuwait Petroleum Corporation did not\nspecify the magnitude of the production reduction.<\/p>\n
Meanwhile, oil production in Iraq has reportedly plummeted sharply.\nThree industry officials told Reuters that production from three major\noil fields in southern Iraq has fallen approximately 70% to just 1.3\nmillion barrels per day (bpd).<\/p>\n
Before the conflict with Iran escalated, these fields were producing\napproximately 4.3 million bpd.<\/p>\n
On the other hand, the United Arab Emirates (UAE) has also stated\nthat it is carefully managing offshore oil production to adjust storage\ncapacity. The national oil company Abu Dhabi National Oil Company\n(ADNOC) said that onshore production operations remain operating\nnormally.<\/p>\n
Gulf nations are indeed beginning to reduce production as storage\ncapacity becomes increasingly constrained. The closure of the Strait of\nHormuz has made many tanker ships reluctant to transit the waterway due\nto concerns about Iranian attacks.<\/p>\n
Approximately 20% of global oil consumption is typically exported\nthrough this narrow strait.<\/p>\n
Amid ongoing tensions, the United States government remains\noptimistic that shipping traffic through the Strait of Hormuz will\nresume shortly.<\/p>\n
US Energy Secretary Chris Wright stated that tanker traffic is\nexpected to return to normal after Iran\u2019s capability to threaten vessels\nhas been weakened.<\/p>\n
\u201cIt will not be too long before we see shipping traffic start to\nreturn more to normal through the Strait of Hormuz,\u201d Wright said in an\ninterview with CNN.<\/p>\n
Nevertheless, he cautioned that current conditions remain far from\nnormal.<\/p>\n
\u201cTraffic right now is still far from normal conditions. That will\ntake time. However, in the worst-case scenario, this will only take a\nfew weeks, not months,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/breaking-crude-oil-price-surges-breaches-us-100-per-barrel-1773035655", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }