Global oil prices have surged past Ksh12,900 ($100) per barrel, triggering fresh concerns over global energy supply and economic stability as tensions escalate between the United States, Israel and Iran.
The sharp rise in prices comes amid escalating military conflict and growing disruptions to shipping through the critical Strait of Hormuz, one of the world’s most important energy corridors. Nearly one-fifth of global oil supply passes through the narrow waterway linking the Persian Gulf to international markets.
Energy markets reacted swiftly to the crisis. Crude oil prices jumped by about 30 percent, with the global benchmark Brent crude briefly climbing above $119 per barrel before stabilising slightly above $100. Analysts say the surge marks the first time oil prices have crossed the $100 mark since the aftermath of the Russia-Ukraine conflict in 2022.
The spike has been largely driven by shipping disruptions and rising security threats in the region. Reports indicate that more than 10 oil tankers and merchant ships have been struck by drones and projectiles, while one vessel was reportedly sunk during the escalating hostilities.
Attacks on energy infrastructure have also worsened supply fears. Air strikes targeting oil storage facilities and production infrastructure have raised the risk of prolonged disruptions to global oil output.
“Iran has effectively slowed or halted shipping in the Strait of Hormuz,” analysts noted, warning that continued instability could significantly disrupt global energy supplies.
Financial markets reacted nervously to the surge in oil prices. Several Asian stock markets recorded steep losses as investors responded to rising energy costs and fears of inflation.
Japan’s benchmark index, the Nikkei 225, fell by nearly 7 percent, while South Korea’s KOSPI plunged by about 8 percent. Australia’s S&P/ASX 200 and Indonesia’s Jakarta Composite Index also declined sharply, reflecting growing investor uncertainty.
Experts warn that sustained high oil prices could drive higher inflation and slower economic growth worldwide. According to the International Monetary Fund, every sustained 10 percent increase in oil prices can push global inflation higher while slowing economic growth.
In Kenya, authorities have sought to calm fears of an immediate fuel shortage. The Ministry of Energy and Petroleum confirmed that the country currently has sufficient fuel reserves to last until April.
Officials said the government is closely monitoring the evolving situation and engaging government-to-government suppliers to ensure supply continuity if disruptions persist.
The Strait of Hormuz is particularly important for Kenya because oil imports from Gulf suppliers such as Saudi Arabia and the United Arab Emirates rely on the route.
Energy analysts warn that if the conflict continues or shipping disruptions worsen, oil prices could climb even higher in the coming weeks, placing additional pressure on economies and consumers around the world.
