Oil prices are heading for their largest monthly rise in four years, raising concerns that a fresh surge in energy costs could reignite inflation and weigh on global economic growth.
Brent crude, the international oil benchmark, has climbed 17.65% this week to above $85 a barrel, marking its biggest weekly increase since early March 2022 following the Russian invasion of Ukraine.
Prices have surged to their highest level in 19 months amid mounting fears of supply shortages. The rally has been fuelled by Iranian attacks on refineries and shipping in the region, alongside severe disruption to maritime traffic.
Ship movements through the Strait of Hormuz have almost completely stopped, according to the Joint Maritime Information Center, further intensifying concerns about global energy supply.
Oil continued to edge higher in early trading, with Brent crude rising 0.37% to $85.75 a barrel, approaching the $86 level reached the previous day — the highest since July 2024.
European gas markets have also experienced sharp volatility. The region’s benchmark Dutch front-month gas contract has surged by more than 50% this week as flows through the Strait of Hormuz were disrupted by the conflict.
Despite the weekly surge, the contract eased slightly in the latest session, falling 2.6% to around €49 per megawatt hour, after trading as low as €30 just a week ago.
