Why fuel prices could skyrocket now in Asia and beyond
Renewed hostilities between the US and Iran in the Strait of Hormuz are raising concerns about potential spikes in global oil prices. Analysts warn that if the conflict escalates and supply chains are disrupted, oil could exceed US$100 per barrel.
Why it matters
Energy price volatility directly impacts global inflation and economic stability, particularly for Asian nations dependent on Gulf oil imports.
If the worst happens, oil can go up to more than US$100 (S$129) a barrel, analysts say.
Listen Summarise Renewed US-Iran tensions threaten oil supply through the Strait of Hormuz, risking fuel prices rising above US$100 a barrel if hostilities continue and buffers run out. China's reduced oil demand and increased US production helped stabilise prices, but emergency reserves are depleting. Asian countries are diversifying energy sources and suppliers to reduce dependence on Gulf oil, but nations with limited refining capacity remain vulnerable to prolonged disruptions. AI generated
SINGAPORE – As tensions flare in the Strait of Hormuz again, there are warnings the oil shock that never came could be around the corner.
Is this another round of crying wolf? Much depends on how the renewed US-Iran hostilities will pan out over the next few weeks, and demand from China, the world’s largest consumer of oil.
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