Global oil markets were shaken this week as Middle Eastern crude benchmarks surged to record highs amid escalating tensions in the Gulf region, raising fears of a potential disruption to one of the world’s most critical energy corridors.
According to data compiled by Reuters, Cash Dubai crude climbed to an unprecedented $153.25 per barrel on Monday for May-loading cargoes. The price exceeded the previous record of $147.50 per barrel for Brent futures set in 2008, highlighting the severity of the current market volatility. At the same time, Oman crude futures also reached a historic peak of $147.79 per barrel.
The spike in prices comes as exports of Middle Eastern crude to Asia have dropped sharply since the start of the conflict involving the United States and Iran. Shipments to Asian markets have fallen to 11.665 million barrels per day this month, a significant decline from nearly 19 million barrels per day in February, before the conflict escalated. The latest figures are also around 32 percent lower than the levels recorded in March 2025.
Energy analysts warn that the situation could worsen if tensions intensify around the Strait of Hormuz, a strategic waterway that handles roughly 20 percent of the world’s oil supply. The narrow maritime passage is also crucial for Asian energy security, carrying nearly half of China’s crude imports and about 90 percent of Qatar’s liquefied natural gas exports to Asia.
Former Pentagon official and retired U.S. Navy Captain Brent Sadler said the conflict poses serious risks to global energy stability. He noted that any attempt to block or disrupt traffic through the strait could have far-reaching economic consequences, affecting fuel prices and supply chains worldwide.
Meanwhile, security concerns in the region intensified after the United Kingdom Maritime Trade Operations (UKMTO) centre reported that a tanker was struck by an “unknown projectile” while anchored 23 nautical miles east of Fujairah in the Gulf of Oman. The vessel suffered minor structural damage, though no injuries were reported and no environmental impact has been detected.
The UKMTO has advised ships operating in the area to remain vigilant and report any suspicious activity while transiting the region.
Despite the surge in Middle Eastern benchmarks, global oil prices showed mixed movements. As of 00:30 GMT, West Texas Intermediate (WTI) crude was trading 1.95 percent higher at $95.32 per barrel, recovering after a 5.3 percent drop the previous day. Brent crude also edged up 1.84 percent to $102.05 per barrel, following a 2.8 percent decline on Monday.
Market observers say the outlook for oil prices will largely depend on developments in the Gulf, particularly whether shipping routes through the Strait of Hormuz remain secure in the coming weeks.
