Economies of different countries across the globe are bracing for the worst situation as oil prices shoot up with Iran war entering a complex phase.

It should be noted that the middle east region accounts for roughly one-third of global oil output.

Oil prices have surged past U$100 a barrel. Brent crude, the international benchmark, rose more than 20% on Sunday, at one point topping U$114 a barrel, as fears grew of prolonged disruption to global energy supplies.

After moderating slightly, the benchmark was hovering around $107.50 as of 02:30 GMT on Monday.

The surge marked the first time oil rose above $100 per barrel since Russia’s 2022 invasion of Ukraine.

The war in the Middle East is showing no signs of abating after US and Israeli strikes on Iran more than a week ago, and the fallout is stoking fears of an inflation crisis.

The halt to shipping through Hormuz — a narrow waterway that normally handles a fifth of the world’s oil — along with attacks on key energy infrastructure have driven up prices of crude and natural gas.

Oil prices surged on Monday after Kuwait and the United Arab Emirates started reducing output as storage rapidly fills up due to the closure of Hormuz.

Iraq began shutting in production last week. At its peak, global benchmark Brent spiked as much as 29%, while WTI jumped 31% during the session.