- Oil prices, including Brent crude, surged past $115 a barrel, reaching levels not seen since 2022, following the second week of the US-Israeli war with Iran, which has effectively closed the Strait of Hormuz.
- The surge has led to severe fuel shortages and rationing across import-dependent South Asia, with incidents of violence reported at petrol stations in Pakistan, including fatalities.
- Pakistan implemented its largest ever single increase in petrol prices, while Bangladesh brought forward university Eid holidays and closed five fertiliser factories to conserve energy, also imposing daily fuel limits.
- Larger economies are also affected, with Japan preparing for a potential release from its national oil reserves, and India assuring its citizens of sufficient oil stocks despite high import dependence.
- Analysts warn that oil prices could exceed $150 a barrel if disruptions in the Strait of Hormuz continue, with Gulf energy producers like Qatar indicating they may have to shut down exports.
IN FULL
