Johannesburg, South Africa — Brent crude oil prices have surged past $110 per barrel, marking their highest level since 2022, as tensions in the Middle East escalate. This dramatic rise is primarily attributed to attacks on critical infrastructure in the region, including refineries and gas fields, and the closure of the Strait of Hormuz, a vital waterway for global energy trade.
The situation has prompted the International Energy Agency (IEA) to authorize the release of 400 million barrels from emergency reserves, with the United States committing 172 million barrels over a period of 120 days to stabilize global oil markets.
However, experts caution that the impact of these releases may be limited if the conflict persists.
The conflict has led to a reduction in oil output from key Middle Eastern producers, including Kuwait, the United Arab Emirates, Iraq, and Qatar. Qatar has also decreased its liquefied natural gas (LNG) production, further tightening global energy supplies. South Africa’s Chief Economist, Annabel Bishop, warns that the country’s economic growth in 2026 is heavily dependent on the duration of the conflict.
The upward pressure on oil prices poses a significant risk to the country’s economic stability, potentially leading to higher fuel prices and increased inflation. Moody’s Ratings suggests that a prolonged conflict could keep oil prices around $110 per barrel for two months and reach $135 by June, highlighting the potential long-term impact of the conflict on global oil markets and the broader global economy.
As the situation in the Middle East continues to evolve, the future of global oil supply and demand remains uncertain.
The effectiveness of emergency reserve releases in stabilizing global oil markets is under scrutiny, and the long — term implications for global economic stability and growth are increasingly concerning.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: enca
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