Global oil prices have surged approximately 25%, reaching their highest level since mid-2022, driven by the escalating conflict involving Iran, according to reports from foreign media. Brent crude futures escalated to a high of $119.50 per barrel, while U.S. West Texas Intermediate (WTI) reached $119.48 per barrel, as reported by Reuters.
Analysts suggest that Sri Lanka will be compelled to increase prices when it begins importing oil at these elevated rates. The ongoing volatility in the market is attributed to the absence of a clear resolution or de-escalation in the Middle East conflict.
On Monday, Iran appointed Mojtaba Khamenei to succeed his father, Ali Khamenei, as Supreme Leader. This development indicates that hardliners maintain control in Tehran amidst the ongoing conflict with the United States and Israel. Local analysts believe this move could further exacerbate the situation.
Brent crude is poised for its largest one-day gain ever, both in percentage and absolute terms, due to the intensifying U.S.-Israeli conflict with Iran. This has prompted some major Middle Eastern oil producers to curtail supplies amid concerns about prolonged disruptions to shipping through the Strait of Hormuz, a critical chokepoint, as reported by Reuters.
The oil supply is further pressured by disruptions in shipping through the Strait of Hormuz and reduced oil production from Iraq, Kuwait, and the UAE.
(Colombo/March 09/2026)
