The price of Brent crude oil has surpassed $118 per barrel for the first time in nearly four years, according to trading data. The last time it traded at this level was in June 2022.
This morning, at 3:24 a.m., oil prices reached $116.58 per barrel, a quarter higher than the previous close. According to the Financial Times, citing traders, the oil sector is facing one of the toughest crises in its history.
Many countries in the region are either reducing production or completely shutting down oil fields.
The spike is a result of escalating conflict in the Middle East: maritime traffic through the Strait of Hormuz, through which around 20 percent of crude oil and liquefied natural gas shipments from Persian Gulf countries pass, has effectively come to a halt.
