Brent Crude Prices Soar to $112 Per Barrel Amid Supply Disruptions
Brent crude oil prices have experienced a dramatic surge, reaching approximately $112 per barrel on Monday, marking a sharp increase of more than 60 per cent since the onset of the US-Iran-Israel conflict. This represents a significant jump from around $70 per barrel prior to the tensions, highlighting severe disruptions in the global energy supply chain.
Intense Supply Shock Drives 56% Price Hike in 30 Days
In just the last 30 days, crude oil prices have escalated by about 56 per cent, underscoring the intensity of the ongoing supply shock. The conflict in West Asia has severely disrupted key supply routes, particularly through the Strait of Hormuz, a critical global channel for crude trade. This disruption has led to widespread concerns over energy availability and pricing worldwide.
Global LNG Flows and Infrastructure Attacks Exacerbate Crisis
The crisis has extended beyond oil, impacting global liquefied natural gas (LNG) flows. Attacks on energy infrastructure in Qatar have further aggravated the situation. Iranian strikes have damaged key facilities, affecting approximately 17 per cent of Qatar's LNG export capacity. This poses a significant risk for countries like India, which imports about 47 per cent of its gas requirements from Qatar.
India's Crude Imports Plunge Amid Regional Tensions
According to a report by Systematix Research, India's crude oil imports have seen a sharp decline in early March due to disruptions in the region. The report stated, "India's import volume also nosedived to just 1.9 million barrels at the week ended March 6th, compared to 25 million barrels per week in February 2026 and 35 million barrels per week in March 2026." It attributed this decline to weakening crude supply from the Middle East amid ongoing tensions, noting, "Drop is largely attributed to lower volume from Middle East."
Key Supplier Export Volumes Witness Significant Declines
The report further highlighted that major suppliers such as Saudi Arabia, Iraq, and the UAE have experienced substantial declines in export volumes. For instance, "Saudi Arabia dropped to 26 million barrels and 12 million barrels in the first and second week of March, versus an average of 42 and 33 million barrels per week in February 2026," it added. These reductions underscore the broader impact of the conflict on global energy markets.
Continued Disruptions Heighten Concerns for Import-Dependent Nations
The continued disruption in supply chains, coupled with damage to critical energy infrastructure, has intensified concerns over energy availability and pricing. Import-dependent countries like India face heightened risks, as the conflict shows no signs of immediate resolution. The global community is closely monitoring the situation, with potential implications for economic stability and energy security worldwide.
