Brent Crude Surges 11% in a Week Amid Middle East Conflict Disrupting Energy Markets
US strikes Iran’s Kharg Island; Trump warns oil infrastructure could be targeted next
US President Donald Trump said American forces bombed military targets on Iran’s Kharg Island, a crucial hub for nearly all of the country’s crude exports, and warned that the island’s oil infrastructure could be hit if Tehran continues to threaten shipping through the Strait of Hormuz.
For reasons of decency, I have chosen not to destroy the oil infrastructure on the island,” Trump wrote, adding that “should Iran, or anyone else, do anything to interfere with the free and safe passage of ships through the Strait of Hormuz, I will immediately reconsider this decision,” he posted.
Administration officials have reportedly indicated that seizing Kharg Island remains a possible option as the Middle East war continues.
US authorises Venezuelan fertiliser imports
Meanwhile, on Friday, Washington approved the import of fertiliser from Venezuela — whose leader was ousted by the US in January — after the ongoing conflict with Iran drove up global prices of the crucial agricultural commodity.
Brent crude prices have surged more than 42% since the US‑Israeli strikes on Iran, as the conflict in the oil‑rich Middle East has rattled global energy markets and fuelled supply concerns.
The US Treasury Department has also temporarily authorised the sale of Russian oil that is stranded at sea, in a bid to ease soaring energy prices — a move that has drawn pushback from Ukraine and several European allies who argue it undermines ongoing sanctions on Moscow.
The leaders of France, Germany, and EU chief Antonio Costa have all voiced opposition to the proposal.
Meanwhile, Russia’s economic envoy Kirill Dmitriev warned that the global energy market “cannot remain stable” without Russian oil supplies.
Shipping through the Strait of Hormuz plummets
Only 77 ships have passed through the Strait of Hormuz so far in March, as the ongoing conflict disrupts one of the world’s most crucial maritime trade routes, according to maritime data firm Lloyd’s.
According to Lloyd’s List Intelligence, most of the vessels currently passing through the Strait of Hormuz belong to the so-called shadow fleet—ships used to bypass Western sanctions and regulations, often linked to Russia and Iran.
By comparison, between March 1 and 11 last year, around 1,229 vessels made the passage, highlighting the sharp decline this year.
Attacks on ships escalate
Since the outbreak of the conflict, 20 oil tankers and cargo ships have been attacked while attempting to transit Hormuz, according to monitoring by AFP, the UK-based maritime security group UKTMO, and other sources.
A Turkish‑owned ship was allowed to pass through the Strait of Hormuz with Iran’s permission, Turkish Transport and Infrastructure Minister Abdulkadir Uraloğlu said, marking one of the few successful transits amid the ongoing war that has effectively shut down much of the vital shipping route.
Fuel tax cuts in Serbia and Portugal
In response to rising energy costs triggered by the conflict, Serbia’s government temporarily cut fuel taxes by 20%, with the energy ministry announcing that excise duties on petrol and diesel would be reduced from Friday until April 15.
Meanwhile, Portugal has also implemented reductions in fuel levies as part of broader tax‑cutting measures aimed at easing the burden of high energy prices on consumers and businesses.
Portugal extends temporary fuel tax cut
Portugal announced it is renewing its temporary reduction in fuel taxes, applying the relief to both petrol and diesel, in an effort to ease the impact of rising energy costs on consumers.
African nations face limited oil reserves
Fuel shortages stemming from the ongoing Middle East conflict could reduce African economic growth by up to three percentage points if they continue, a senior regional energy regulator told AFP, highlighting the continent’s vulnerability due to limited oil reserves.
African fuel reserves critically low
Most African nations maintain fuel reserves sufficient for only 15 to 25 days, far below the 90-day standard recommended by the International Energy Agency, according to Geoffrey Aori, CEO of the Regional Association of Energy Regulators for Eastern and Southern Africa.
Aori urged African governments to implement fuel rationing and subsidies to mitigate the short-term impact of inflation and weakening currencies caused by the ongoing energy crisis.
Air travel heavily disrupted
The conflict in the Middle East has also severely impacted aviation, with over six million passengers facing flight cancellations to or from the region since the outbreak of war, according to aviation data firm Cirium.
The aviation data firm reported that over 52,000 of 98,000 scheduled flights have been cancelled since the outbreak of the Middle East conflict.
Nepal limits cooking gas sales
In response to import disruptions caused by the war, Nepal has begun selling half-filled cooking gas cylinders to prevent hoarding and panic buying, officials said.
The landlocked Himalayan nation of Nepal, home to 30 million people, depends almost entirely on India for the transport of its fossil fuels, with roughly 90% of India’s liquefied petroleum gas shipments passing through the Strait of Hormuz.
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