Global oil prices surged above $110 per barrel as tensions in the Middle East escalated, driven by the continued closure of the Strait of Hormuz, a critical global oil transit route. Investors are increasingly concerned about supply disruptions and rising inflation worldwide.

The surge in oil prices is impacting global markets, increasing transportation costs and pressuring economies dependent on energy imports. Analysts warn that prolonged disruptions could trigger stagflation—high inflation combined with slow economic growth.

Financial markets reacted with volatility, with investors shifting toward safe-haven assets like gold and the US dollar. Governments are also considering emergency measures to stabilize energy supplies.

Source : Reuters.