Global Oil Prices Break Through US$112, Analysts Warn of Ominous Sign for World Economy
Global oil prices continued to climb, surpassing the US$110 per barrel mark during trading on Monday morning, 23 March 2026. The upward trend in prices, triggered by escalating geopolitical tensions in the Middle East, is viewed as one of the ominous signs for the global economy.
Citing India Today, Brent crude oil traded at US$112.85, or approximately Rp1,912,694.65 (estimated exchange rate of Rp16,950 per US dollar) per barrel. Meanwhile, the US benchmark crude oil, West Texas Intermediate (WTI), stood at US$98.91, or Rp1,676,425.59 per barrel.
US and Israeli strikes on Iran have expanded to various strategic areas in West Asia. The situation, initially geopolitical in nature, is now transforming into a global economic threat, with oil prices at the centre of the pressure.
Market concerns are no longer solely about rising prices but also about disruptions to energy supplies. The Strait of Hormuz, a vital route through which nearly 20 percent of the world’s oil supply passes, is under pressure.
Ship tanker movements have slowed, insurance costs have surged, and repeated attacks have turned this energy distribution route into a high-risk zone.
Vayana President Kaushal Sampat assessed that this escalation of conflict has directly impacted the energy sector. He added that the situation is not merely a short-term disruption.
“This is not just a temporary issue, but a combination of direct disruptions and emerging structural risks,” he said.
Several market estimates indicate that around 8 to 10 million barrels per day of oil supply could be affected if the disruptions continue. Even the Strait of Hormuz itself carries nearly 20 million barrels per day, so even minor disruptions could have global repercussions.
Stock markets have become volatile, currencies have weakened, and bond yields are adjusting to expectations of higher inflation. Investors are also lowering their economic growth projections amid soaring energy costs.
Master Capital Services Chief Research Officer Dr. Ravi Singh stated that pressure is already evident in global financial markets. “The latest weakness in stock markets is triggered by the escalation of the Middle East conflict, rising oil prices, and foreign investor sell-offs,” he explained.